Q1 2024 NetSol Technologies Inc Earnings Call
[music].
Greetings and welcome to the met coal technologies first quarter 2024 earnings call.
Speaker 1: Greetings and welcome to the NetSole Technologies first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patty McLassen, General Counsel. Thank you, Patty. You may begin.
At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.
Should require operator assistance during the conference. Please press star zero on your telephone keypad.
A reminder, this conference is being recorded it is now my pleasure to introduce your host Eileen Mclaughlin General counsel. Thank you Patty you may begin.
Speaker 2: Good morning everyone and thank you for joining us. Following a review of the company's business highlights and financial results, we will open the call for questions.
Good morning, everyone and thank you for joining us following a review of the company's business highlights and financial results, we will open the call for questions.
Speaker 2: I will now provide the necessary cautions regarding the forward-looking statements made by management during this call. Please note that all the information discussed on today's call is covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act.
I will now provide the necessary cautions regarding the forward looking statements made by management during this call.
Please note that all of the information discussed on today's call is covered under the Safe Harbor provisions of the private Securities Litigation Reform Act.
Speaker 2: The company's discussion may include forward-looking statements reflecting management's current forecast of certain aspects of the company's future, and our actual results could differ materially from those stated or implied.
The company's discussion may include forward looking statements, reflecting management's current forecast of certain aspects of the company's future and our actual results could differ materially from those stated or implied.
Speaker 2: These forward-looking statements are qualified by the cautionary statements contained in NetSOL's press releases and SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q .
These forward looking statements are qualified by the cautionary statements contained in that sounds press releases and SEC filings.
Including our annual report on Form 10-K, and quarterly reports on Form 10-Q.
Speaker 2: I would also like to point out that we will be discussing certain non-GAAP measures. The press release issued earlier today contains a reconciliation of these non-GAAP financial results to their most comparable GAAP measures. Finally, I would like to remind everyone that this call will be recorded, made available for replay at www.NEDSOLTech.com, and via link available in today's press release. Now I'd like to turn the call over to Najib. Najib? Thank you, Bill.
I would also like to point out that we will be discussing certain non-GAAP measures. The press release issued earlier today contains a reconciliation of these non-GAAP financial results to their most comparable GAAP measures.
Finally, I would like to remind everyone that this call will be recorded and made available for replay at www Dot that's all tech dot com and via link available in today's press release now I'd like to turn the call over to the cheap the Jeep.
Thank you Betty and good morning, everyone.
Speaker 3: We had a strong first quarter 2024 which was highlighted by increases in total net revenues, improved gross margin and profitability.
We had a strong first quarter of 2024.
Which was highlighted by increases in total net revenues improved gross margin and profitability.
Speaker 3: Revenue grew in the first quarter due to solid performance across our business. Each of our three complementary revenue streams contributed meaningfully. Importantly, we recognized approximately $1.3 million in licensing revenues from Isuzu Motors, a multinational auto manufacturer based in Japan.
Revenue grew in the first quarter, you had a solid performance across our business each of our three complementary revenue stream contributed meaningfully.
Thirdly, we recognized approximately $1 $3 million in licensing revenues from Susu Motors, a multinational auto manufacturer based in Japan.
Speaker 3: Our goal going forward is to sign more licensing deals so that we can drive more consistent license revenue from quarter to quarter.
Our goal going forward is to find more licensing deals. So that we can drive more consistent lessened revenue from quarter to quarter.
Speaker 3: In addition to the licensing fees, we also continue to see consistent revenue recognition from subscription and support or SaaS-based revenue as well as our services revenue, which is generated after a licensing deal is signed.
In addition to the licensing fees.
Also continued to see consistent revenue recognition from subscription and support our success based revenue.
Our services revenue, which is generated after a licensing deal is signed.
Speaker 3: Also on display this quarter was impact of increased cost discipline across the organization.
Also on display this quarter was the impact of increased cost discipline across the organization.
Speaker 3: Cost containment remains a priority as we focus on freeing capital to allocate to our two most vibrant growth opportunities, the growth of our SaaS business and the penetration of the U.S. market.
Cost containment remains a priority as you focus on freeing capital allocated to our two most vibrant growth opportunities the growth of our SaaS business and the penetration of the U S market.
Speaker 3: Our expansion in the US continues to progress as we focus on staffing a new office in Austin, Texas with the best talent available. Our goal with this facility is to aggressively expand Nussle into the United States which is a largely untapped market for us.
Our expansion in the U S continues to progress.
If you focus on staffing our new office in Austin, Texas.
But the best talent available.
With this facility.
So we are aggressively expanding our sold into the United States.
She is a largely untapped market for us.
Speaker 3: In addition to organic growth in the US, we continue to carefully evaluate strategic acquisition opportunities in North America.
In addition to organic growth in the U S. We continue to carefully evaluate strategic acquisition opportunities in North America.
Speaker 3: We also now live with Autos, our SaaS-based white-label platform, providing long-term on-demand mobility models and retail solutions in 60 Mini Anywhere dealerships across 37 U.S. states.
We also know lives with autos, our SAS based white label platform, providing long term on demand mobility models and retail solution in 60 mini anywhere dealership across 37 U S states demonstrating.
Speaker 3: demonstrating the demand of our SAS products in this market.
Demonstrating the demand of our SaaS products in this market.
Speaker 3: On the business development front, we continue to see strong activity and remain focused on building a pipeline of potential licensing deals.
On the business development front, we continue to see strong activity and remain focused on building a pipeline of potential licensing deals.
Speaker 3: In summary, we are very pleased with the results we delivered this quarter.
In summary, we are very pleased with the results we delivered this quarter.
Speaker 3: Our performance reflects the earnings potential of the Nestle business model as we scale revenue.
Our performance reflects the earnings potential of the Nashville business model.
As we scale revenue.
Speaker 3: We are working diligently to drive more predictable revenue with additional licensing deals and continued expansion of our SaaS offerings which we believe will drive improved and more consistent profitability and cash generation.
We are working diligently to drive more predictable revenue additions.
Additional licensing deals and continued expansion of our SaaS offerings, which we believe will drive improved and more consistent profitability and cash generation.
Speaker 3: I'll now turn the call over to Roger Amon, our Chief Financial Officer, to go over our financials from this quarter. Roger.
I'll now turn the call over to Roger Almond, our Chief Financial Officer to go over our financials from this quarter Roger.
Speaker 1: Thanks Najeeb. Our total net revenues for the first quarter of fiscal 2024 were $14.2 million compared with $12.7 million in the prior year period. On a constant currency basis, net revenues were $14.3 million.
Thanks to achieve our total net revenues for the first quarter of fiscal 2024 were $14 2 million compared with $12 7 million in the prior year period.
On a constant currency basis, net revenues were $14 3 million.
Speaker 1: License fees were approximately $1.3 million compared with $250,000 in the prior year period and the same on a constant currency basis.
License fees of approximately $1 3 million compared with 250000 in the prior year period, and the same on a constant currency basis.
Speaker 1: Recurring revenue or subscription support revenues for the first quarter were $6.5 million compared with $6 million in the prior year period and the same on a constant currency base.
Recurring revenue or subscription and support revenues for the first quarter were $6 5 million compared with 6 million in the prior year period, and the same on a constant currency basis.
Speaker 1: Total services revenues for the first quarter were $6.4 million, compared with $6.4 million in the prior year period, and $6.5 million on a constant currency basis.
Total services revenues for the first quarter were $6 4 million compared with $6 4 million in the prior year period, and $6 5 million on a constant currency basis.
Speaker 1: Total cost of revenues were $8.1 million for the first quarter compared to $8.5 million in the first quarter of fiscal year 2023. On a constant currency basis, total cost of revenues was $9.6 million.
Total cost of revenues were $8 1 million for the first quarter compared to $8 5 million in the first quarter of fiscal year 2023.
On a constant currency basis total cost of revenues was $9 6 million.
Speaker 1: Growth profit for the first quarter fiscal 2024 was $6.2 million or 43% of net revenue.
Gross profit for the first quarter fiscal 2024 was $6 2 million or 42% of net revenues.
Speaker 1: compared with $4.3 million or 33% of net revenues in the prior year period.
Compared with $4 3 million or 33% of net revenues in the prior year period.
Speaker 1: On a constant currency basis, gross profit was $4.7 million.
On a constant currency basis gross profit was $4 7 million.
Speaker 1: Operating expenses for the first quarter were $5.8 million or 41% of sales compared to $6.1 million or 48% of sales in the same period last year. On a constant currency basis, operating expenses for the first quarter were $6.4 million or 45% of sales.
Operating expenses for the first quarter were $5 8 million or 41% itself compared to $6 1 million or 48% itself in the same period last year.
On a constant currency basis operating expenses for the first quarter were $6 4 million or 45% of sales.
Speaker 1: Turning to our profitability metrics, our gap net income attributable to NetSOL for the first quarter of fiscal 2024 totaled $31,000 or.003 cents per diluted share, compared with a gap net loss of $621,000 or a loss of 6 cents per diluted share in the first quarter of last year.
Turning to our profitability metrics are GAAP net income attributable to net sold for the first quarter of fiscal 2024 totaled 31004, 0.003 cents per diluted share compared with a GAAP net loss of 621000 or a loss of <unk>.
<unk> per diluted share in the first quarter of last year.
Speaker 1: Included in our net income this quarter was a loss of $134,000 on foreign currency exchange transactions.
Included in our net income this quarter was a loss of 134000 on foreign currency exchange transactions.
Speaker 1: compared to a gain of approximately $1.3 million in the first quarter of last year.
<unk> to a gain of approximately $1 3 million in the first quarter of last year.
Speaker 1: On a constant currency basis, we realize the loss of $174,000 on foreign currency exchange transactions.
On a constant currency basis, we realized a loss of 174000 on foreign currency exchange transactions.
Speaker 1: Because we operate in several geographical regions, a significant portion of our business is conducted in currencies other than the US dollar. A decrease in the value of the US dollar compared to foreign currency exchange rates generally has affected interest rates and has affected the market.
Because we operate in several geographical regions a significant portion of our business is conducted in currencies other than the U S. Dollar a decrease in the value of the U S dollar compared to foreign currency exchange rates January.
Generally has the effect of increasing our revenues, but it also increases our expenses denominated in currencies other than the U S dollar.
Speaker 1: but it also increases our expenses denominated in currencies other than the US dollar.
Speaker 1: Likewise, as the US dollar gains strength relative to foreign currency exchange rates, it tends to reduce our revenues, but it also reduces our expenses denominated in currencies other than the US dollar.
Likewise as the U S dollar gained strength relative to foreign currency exchange rates it tends to reduce our revenues, but it also reduces our expenses denominated in currencies other than the U S dollar.
Speaker 1: Moving to our non-GAAP metrics, non-GAAP adjusted EBITDA for the first quarter fiscal 2024 was 466,000 or 4 cents per diluted share, compared with a non-GAAP adjusted EBITDA loss of 28,000 or 0.002 cents per diluted share in the first quarter of last year.
Moving to our non-GAAP metrics non-GAAP adjusted EBITDA for the first quarter of fiscal 2024 was 466000 or four cents per diluted share.
Compared with a non-GAAP adjusted EBITDA loss of 28000 or 0.002 cents per diluted share in the first quarter of last year.
Speaker 1: Please see the reconciliation schedules contained in our earnings release for our revised calculations of adjusted EBITDA for the quarters ended September 30, 2023 and 2022.
Please see the reconciliation schedules contained in our earnings release for our revised calculations of adjusted EBITDA for the quarters ended September 32023 and 2022.
Speaker 1: Turning to our balance sheet, at quarter end, we had cash and cash equivalents of approximately 16.6 million or approximately $1.46 per diluted common share. Total stockholders equity of September 30, 2023 was 36.7 million or $3.22 per diluted share.
Turning to our balance sheet at quarter end, we had cash and cash equivalents of approximately $16 6 million or approximately $1 46 per diluted common share.
Total stockholders equity at September 32023 was $36 7 million or $3.22 per diluted share.
Speaker 1: That concludes my prepared remarks. I'll now turn the call back over to Najib. Najib?
That concludes my prepared remarks, I'll now turn the call back over to new Jeep the Jeep.
Speaker 3: Thank you, Roger. This was an excellent quarter for us. Our focus is on more consistently delivering solid revenue growth, maintaining cost discipline across the company, and executing on our strategy to drive our SaaS business and penetrate the U.S. market.
Thank you Roger.
This was an excellent quarter for us our focus is on more consistently delivering solid revenue growth maintaining cost discipline across the company and executing on our strategy to drive our SaaS business and penetrate the U S market.
Speaker 3: This is how we build long-term value for the shareholders.
This is how we build long term value for the shareholders.
Speaker 3: With that, I'd like to open the call for questions, operator.
I like to open the call for questions operator.
Speaker 1: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please.
Thank you.
Now be conducting a question and answer session if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Press Star two if he'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the FERC.
One moment, please while we poll for questions.
Yeah.
Okay.
Speaker 1: Thank you. Our first question is from Tyler Brewer with Stoneworks Capital. Please proceed with your question.
Thank you our first question, it's entitled Brewer with their own working capital. Please.
Please proceed with your question.
Speaker 4: Yeah, hey, thank you for taking my question. So I was just wondering, could you talk a little more about the long-term strategy for the US market and whether you think you can replicate some of the success you had overseas?
Yeah, Hey, Thank you for taking my question so.
So I was just wondering could you talk a little more about.
The long term strategy for the U S market and whether you think you can replicate some of the success you have.
Had overseas.
Speaker 3: Yeah, I think it's a twofold question. Good morning of course. What are we doing now short term as you heard in the presentation?
Yeah.
It's a two part question. One is of course, what are we doing now short term as you heard in the presentation.
Speaker 3: We are very focused on driving business from our pretty strong pipeline across the globe.
Focused on driving business from a pretty strong pipeline across the globe as you know these license deals.
Speaker 3: As you know, these license deals are high in value, but they also take time to close if we win this deal. So that is an ongoing process. In addition to that, our SaaS business mobility is quite, I think, impressive for us. So we will look at it.
Our high in value, but they also take time to close if we win this deal. So that is an ongoing process. In addition to that our SAS business mobility is quite I think impressive for us and we will look at it the law.
Speaker 3: The long term, I think I'd be, I feel, continue to invest in North America, which is our, we believe, not only is an untapped market, but also it's a very strong and resilient market for our business.
Tim I think I'd be I feel continue to invest in North America.
Which is our we believe not only is untapped market.
But also it's a very strong and resilient market for our business.
Speaker 3: Given all the challenges across the globe, I feel...
Given all the challenges across the globe by freedom.
Speaker 3: Both the U.S. and China are very strong markets for us. I was personally there just recently and met with all the customers and our employees and the environment is still very robust for our company. So I think in the long term we feel that our growth will come from the U.S., North America, Canada and U.S.
Both the U S and China on a very strong market for US I was personally there just recently and met with all our customers and our employees and the environment is still very robust for our company. So I think in the long term, we feel that our growth will come from the U S. North America, Canada and U S. There's a glut of activities going on.
Speaker 3: There's a lot of activities going on, given the new office. We'll continue to invest in the new talent. We have been assembling some good people, locally, in all the key positions, because I think for us to...
Given the new office, we will continue to invest in the new talent, we have been assembling some good people locally.
And all the key position because I think for us to make a.
Speaker 3: a solid name in the market and scale our business, we need to have a lot more new executive level positions.
Solid name in the market and scale our business, we need to have a lot more new executive level positions.
So there'll be a not dependent on.
Speaker 3: people traveling regularly to US from different countries. So we are now investing and building up our Austin, Texas office with the right talent both in sales, marketing and client relations.
People traveling regularly.
The U S from different countries. So we are not investing and building up our Austin, Texas office with the right talent, both on the sales marketing and client relations.
Speaker 3: That is really, to me, is the future, because once we have a bigger scale and capability on site.
That is really to me is the future because once we have a bigger scale and capability on site.
Speaker 3: Everyone knows our customers and new prospect that our amazing dependency on technology campus in Lahore, Pakistan, which is the state of the art, supports our customers worldwide.
Everyone knows our customers and new prospects that are amazing.
Amazing dependency on a technology campus in Lahore, Pakistan, which is the start of the yard to supports our our customers worldwide.
Speaker 3: and never, never missed our deliveries commitment. So we're pretty confident for our future outlook long term because investment in US continued, growth in the US, China, and also looking at many other markets in Mexico, which we have a lot of customers, and North America, of course, combined in China and Canada. So I feel quite good about it, about the future outlook.
And never never missed our delivery commitments. So we are pretty confident.
For our future outlook long term because investment in U S and continued growth in the U S. China and also looking at many other markets and Mexico, which would be a lot of customers in North America of course, combined China and Canada.
Feel quite good about it about the future outlook.
Speaker 4: Got it. Thank you. Thanks. That's thank you for answering my questions and congratulations on the court.
Got it. Thank you. Thanks, that's thank you for answering my questions and congratulations on the quarter.
Thank you.
Yeah.
Speaker 1: Thank you. Our next question is from Todd Felty with Aegis Financial. Please proceed with your question.
Thank you. Our next question is from Todd healthy with <unk> financial. Please proceed with your question.
Speaker 5: Hey, congratulations on the return to profitability and thank you for taking my questions. Sure, thank you. Just had a...
Hey, congratulations on the return to profitability and thank you for taking my questions.
Sure. Thank you.
Just had a had a few here first of all.
Speaker 5: Do you expect the margins and profitability to continue? And are you still standing by? I believe it was the last quarterly conference call you had estimated revenues for this year would be somewhere $60 to $62 million. Are you still standing by that?
Do you expect the our margins and profitability to continue and are you still standing by I believe it was the last quarterly conference call you'd estimated revenues for this year would be somewhere $60 million to $62 million.
Are you still standing by that.
Speaker 3: Yes, so far we are living as is, and the best time would be to formally update in the second quarter, which will be half one, and we'll be in a better position to update or even improve the guidance. So I think now we're pretty strong about it, yes. And the profitability is a function of revenue. Our margins have improved to 43% this quarter versus almost 27%.
Yes, so far we are.
Leaving the others and the best time would be to formally update in the second quarter, which will be half one and it'll be in a better position to update or even improve the guidance. So I think I'm not.
Now pretty feel pretty strong about it yes, and the profitability.
The function of as you know the revenue.
Our margins improved to 43% this quarter versus almost 27.
Speaker 3: previous quarter. So it's a sign that we are becoming efficient, we have got down costs across the company, but we're investing in the right people, right talent and the revenue growth is number one focus of course and of course all the key metrics. Of course bottom line will be the result of how fast we grow the revenue and the growth.
Previous quarter. So it's a sign that we are becoming a fishing we've cut down costs across the company are you investing in the right people the right talent and the revenue growth is our number one focus of course and of course, all the key metrics of course bottom line a little bit the result of how fast we grow the revenue and the gross margins.
Speaker 5: Okay, that's great to hear. And this is more of a general question, but as you're bidding for new customers, what percent would you say of customers that you bid on for a software project that you actually land?
Okay. That's that's great to hear and this is more of a general question, but as you're bidding for new customers. What percent would you say of of customers that you bid on four software project do you actually land.
Speaker 3: Well, that's a very good question. It's a, I think some of our listeners or investors who've been following us for some time.
Well, that's a very good good question [laughter] it's.
Some of our listeners are investors who've been following us for some time.
Speaker 3: We are in a very unique business, a very niche business. Few companies are competing with each other. Some are very big, some are about the same scale as we are, whether we are in North America or Europe or Asia. I think pipeline is, we don't mention the pipeline. We have a robust pipeline, pretty large size. Some are, you know, we believe we can achieve some successes in the near future.
We all know very well.
Our unique business niche business a few companies.
In competing with each other some are very big somewhere about the same scale as we are.
Whether it be in North America, or Europe, or Asia I think.
Pipeline is we don't we don't mention the pipeline, we have a robust pipeline pretty large size.
Some are.
We believe we can achieve some successes.
Near future somebody takes a bit more time.
Speaker 3: If I say, if you have 10 deals out there and we close three of them, that'll be the greatest for the company because it is a tough competition because it's a very niche and few companies. Secondly, I think we definitely are working diligently to improve our scale and capability in the U.S., which is, again, a very robust and strong market for us. And as we get stronger in the U.S., our chances to win U.S. business will only get better.
I say, if you have 10 deals out there and we closed three of them that'll be the day for the company because it is a tough competition, because very niche and shoe companies. Secondly, I think do we definitely are working diligently to improve our scale and capability in the U S, which is again the very robust and.
It's a strong market for us and as he gets stronger in the U S. Our chances to win U S business is get will get only get better.
Speaker 3: Okay, and so if you land about three out of ten of the contracts you bid on, what do you think is the number one reason why you don't land those other seven, or what are the areas you're improving on? Does it relate to the scope capabilities of your product? I think, Todd, one thing for sure, like I said, whether investor long-term funds or our customers.
Okay, and so a few land you know about three out of 10 of the contracts you bid on what what do you think is the number one reason why you don't land those other seven or whatever there is you're improving on as it does it relate to this.
You said for product.
I think Todd one thing for sure.
Said weather, especially long term funds are our customers.
Speaker 3: who know us well, our capabilities, our strengths, and our opportunities that we have.
Oh, no I spent a lot of capabilities strengthen our opportunities that we have.
Speaker 3: US is the most challenging market but also the most incredible market to work in and we are working on a decision.
U S is the most challenging market, but also most incredible market to work and we are working on diligently.
Speaker 3: What happens is, in every RFP, we get invited, at least five top companies, sometimes five to seven, and then we become shortlisted. In most cases, we do become shortlisted. Oftentimes, the contracts are really large in size and value, then they prefer to look at the U.S. company which have very strong U.S. presence. And we understand that because these customers wanna depend on the local.
What happens is and every rfps, we get into I did at least five top companies so that five to seven and then.
Then we become Shortlisted in most cases, we do become short leases.
Oftentimes the contracts are really large in size and value then they prefer to look at and do U S company, which have very strong U S presence and we understand that because these customers.
Wanted to depend on the local.
Speaker 3: If this company gets 70,000 employees for example, I'm not going to share the name here and we compete with them. Sometimes we win over them, sometimes they win over us.
It is a company that got 70000 employees for example, I'm not going to share the name here and we compete with them, sometimes we win over them, sometimes they are in a rush.
Speaker 3: In China, we have beaten them many times in major contracts. So I think companies look for scale capability, but there are companies which are mid-sized, mid-tier companies.
And John have you been there many times in a major contract. So I think companies look for scale capability, but there's there are companies, which are mid size mid tier company.
Speaker 3: Which is our right spot for us and and most cases we win them
Which is a right spot for us and in most cases, we win them.
Speaker 3: So I think it's a it's a mixed thing competition competition is good for us. It makes us better and stronger to be able to compete with the big big guys. We have beaten many times and we once won over SAP years ago in China because we were so strong in China still are the number one company in China in the space.
I think it's a it's a mixed thing competition competition is good for us it makes us better and stronger to be able to compete with the big Big Guy via beaten many times have you once one earth S. A P years ago in China, because you were so strong in China still are the number one company in China in this space U S is a very big market, we will do.
Speaker 3: U.S. is a very big market. We will do well in the coming three to five years, and positioning is the way that we get the right people, partners, joint ventures, and there's lots going on. Some I'm not in the liberty of sharing because they're not public information yet. As they become material, we'll, of course, disclose and share with the market. So overall, I'm very excited and bullish about the U.S. market.
Well in the coming three to five years and positioning as the way that we get the right people.
Partners Joint ventures, and there's lots going on some I'm not in the Liberty of shady because theyre not public information yet as it become material of course disclose and share it with their own cars. So overall I'm very excited and bullish about the U S market.
Speaker 5: Great, that's helpful. Then my last question is I noticed the dramatic improvement in net sell Pakistan, which I think you own over 60% of but I've been looking at the minority interest or your, you know, non controlling interest investments. And it seems like over the last year and a half that's cost you about $4 million. Can you come discuss that and what your plans are? Because, you know, that's a lot of money to a to a company that's, you know, just now breaking into profit.
Great. That's helpful. And then my last question is I noticed the dramatic improvement in our net salt, Pakistan, which I think you own over 60% of all I've been looking at the minority interest or your you know noncontrolling interest investments and it seems like over the last year and a half that has cost you about $4 million.
Can you kind of discuss that and what your plans are because you know that that's a lot of money to a to a company. That's just now breaking into profitability.
Speaker 3: Okay, very good question. Look, NTI, the parent company, this company owns 67% of national Pakistan, so minority interest is about 33% of which
Okay. A very good question look MTI the parent company. This company owns 67% of Nassau, Pakistan, So minority interest at about 33% of which.
Speaker 3: I think mostly funds and institutions, some are my family ownership, which is not that much. We have more ownership in the parent company than NTI.
Mostly funds insertion some of my family ownership, which is not that much of a mush ownership at the parent company the N T I C.
Speaker 3: Secondly, I think, yes, it was a good quarter. Continuously, we are investing in Lahore because what happens is, as you know, AI is a new revolution, and our AWS and some other mobility platform. These are three very important new areas that we've been investing.
Secondly, I think yes. It was it was a good quarter continuously reinvesting in la because what happens is as you know AI is.
A new regulation, and our AWS and and some other mobility platform. They're three very important new areas have you been investing they've hired some M D ph DS.
Speaker 3: We hired some MIT PhDs and AI specialists. They're helping us develop some solutions. We have built up some more scale in the AI set in the US and in Lahore, Pakistan, because we want to provide proactively some part of the AI tools to our customers, because every customer eventually will embrace and adopt AI tools and technology. So we are.
Especially as they are helping us develop some solutions, we had built up some more scale and I said in the U S and in Lahore, Pakistan, because we want to provide proactively some part of the AI tools to our customers because every customer eventually will embrace and adopt AI tools and technology. So we are.
Speaker 3: As small company as we are, we're still ahead of the curve because we don't want to be left behind. So we are investing in those areas. And then of course, we continue to invest in the younger, new generation because some are being retired, we bring in new fresh blood in programming, new tools, equipped with all the digital, you know, mobility platform. So there's lots going on. This company is a ish.
And small companies, we always still ahead of the curve because you don't Wanna be left behind so we are investing in those areas and then of course, we continue to invest in the younger new generation because somebody being retired I've, you're bringing new fresh blood in programming new tools equipment, although digital.
Mobility platform. So there's lots going on in this company is a fish.
Speaker 3: It's not only a technology company, but also it has a vision for the innovation. And the last thing we wanna be is left behind in the curve. This company is always ahead of the curve, making the investment in the right place, and that takes cash and investment. But we are streamlining our headcount.
Not only a technology company, but it also it has a vision for the innovation and the last time you Wanna be is left behind in the car companies.
Companies always ahead of the curve, making the investment in the right place and that takes cash and investment and but we are streamlining our head count.
Speaker 5: completely all over the globe, not just in Pakistan. So all in all, I feel very comfortable about our strategy. We will execute what we promised this year and we'll get stronger and stronger in coming years. Thank you for taking my questions.
Completely all over the globe not just in bugs and so all in all I feel very comfortable about our strategy, we will execute what we promised this year and we will get stronger and stronger in coming years.
Alright. Thank you for taking my question. So hot that shows you. Thank you.
Welcome. Thank you.
Okay.
Speaker 1: Thank you. There are no further questions at this time. I'd like to hand the floor back over to Najib Ghori for any closing comments.
Thank you there are no further questions at this time I'd like to hand, the floor back over to Jim Corbett for any closing comments.
Speaker 3: Thank you for joining us today. I especially want to thank our investors for their continued support, our loyal customers, and our most dedicated employees worldwide for their ongoing contributions.
Thank you for joining us today.
Specially want to thank our investors for their continued support our loyal customers and our most dedicated employees worldwide for their ongoing contributions.
Speaker 3: We will look forward to updating our earnings call in the next call. Thank you very much.
We will look forward to updating our call our earnings call next call. Thank you very much.
Speaker 6: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. My team can stay for a minute, John and Walter. Thank you, operator.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
My deep concern for a minute.
John and Walter Thank you Alberto.
I mean could be chairman.
I'll be clear.
Hi, John.
Okay listen.
Oh.
Okay, Nadine Hello, yes.