Good morning. And welcome to NetSol Technologies Fiscal Fourth Quarter and Full Year 2018 Earnings Conference Call. On today’s call are Najeeb Ghauri, Chairman and Chief Executive Officer; Roger Almond, Chief Financial Officer; Naeem Ghauri, President, Global Sales; Jeff Bilbrey, President, North America; and Patti McGlasson, General Counsel. I would like to now turn the call over to Patti McGlasson, who will provide the necessary cautions regarding the forward-looking statements made by management during this call. Please proceed.

Good morning, everyone, and thank you for joining us. Following a review of the company’s business highlights and financial results, we will open up the call for questions. Please note that all of the information discussed in today’s call is covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act. 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 may differ materially from those stated or implied. These forward-looking statements are qualified by the cautionary statements contained in NetSol’s press release and SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q. 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 on our website at www.netsoltech.com and via link available in today’s press release. Now, I’d like to turn the call over to Najeeb. Najeeb?

Thank you, Patti, and good morning, everyone. Before the market opened today, we issued a press release announcing our results for the fiscal fourth quarter and full year ended June 30, 2018, and a copy of which is available in the Investor Relations section of our website. Fiscal 2018 signified a major transformational shift for both our business and for the greater finance and leasing landscape. Unlike all major changes, it has not always been easy. In our case, however, much of the change has been for the better and we are looking forward to a new start and a bright future, a future that is already well underway. To that end, the fourth quarter was a solid, solid end to an eventful year for NetSol. From a financial perspective, we successfully achieved our third consecutive quarter of profitability and grew our topline to 15% over Q4 2017 and continue to improve our cost structure immensely. Many of you know that over the course of the past year or so, we have been focused on removing distractions, as well as other components that will be non-essential to NetSol’s long-term operational strategy. One of the ways that this focus has become manifest is through a major cost reduction initiative, which I’m proud to say has now saved the company $8.5 million in fiscal 2018, which was a major driving factor in our $9.3 million increase in annual net income over last year. Moreover, we increased our earnings on a per share basis from a loss of $0.46 in fiscal 2017 to a gain of $0.38 in fiscal 2018. In the fourth quarter alone we were able to generate $1.8 million in savings on cost of revenue and another $0.5 million from operating expenses. Further to this point, within our companywide strategic initiative to become a leaner, nimbler and much more efficient company, we also conducted a comprehensive internal review of personnel and processes. After that review our focus has been on rationalizing costs at every level, every department and primarily human resources or HR areas that would not be critical to the long-term growth of our company. In total, we ended up in reducing our headcount to less than 1,400 employees from a high of 1,800 in 2017. While not easy the decision of drastically improved our key fundamental going forward we remained focus on additional areas of organizational optimization to remain one of the most competitive IT company in our industry. On the operation side, the fourth quarter and even this current quarter having filled with a torrent of sales activity and some very notable wins, which I will discuss in detail a little later. But before I go any further I now like to turn the call over to our CFO, Roger Almond, who will walk us through the financial results for fiscal fourth quarter -- Q4 and the full year 2018. Roger?

Thanks, Najeeb. Turning to our fiscal fourth quarter and full year 2018 financial results ended June 30th, our total net revenues for the fourth quarter was $16.6 million, compared to $14.5 million in the prior year period. The increase in total net revenues was primarily due to an increase in total license fees of $122,000, an increase in total maintenance fees of $206,000 and an increase in total services revenues of $1.8 million. For all of fiscal 2018, total net revenues were $60.9 million, compared to $65.4 million in fiscal 2017. The decrease in total net revenues was primarily due to a decrease in total license fees of $11.6 million, which was offset by an increase in total maintenance fees of $332,000 and an increase in total services revenues of $6.8 million. Total license fees in Q4 were $3.4 million, compared to $3.3 million in the prior year period. For the full year total license fees were $6.9 million, compared to $18.5 million in fiscal 2017. The decrease in license fees for the full fiscal year is primarily due to the $16,345,000 of license revenue recognized for the 12 country NFS Ascent contract recorded in 2017. Total maintenance fees in Q4 were $3.8 million, compared to $3.6 million in the prior year period. For the year total maintenance fees were $14.8 million, compared to $14.5 million in the prior fiscal year. The increase in total maintenance fees for the quarter and year was primarily due to the start of new maintenance agreement from customers who went live with our product during the latter stages of fiscal year 2017 and into fiscal year 2018. We anticipate maintenance fees to gradually increase as we implement both our NFS legacy product and NFS Ascent. Total services revenue for the quarter were $9.4 million,…

Thank you, Roger. For today’s call I will spend a brief amount of time discussing our results for fiscal 2018, as well as some of our big wins in the last few months. But I want to focus the reminder -- remainder of my prepared remarks on our outlook for fiscal year 2019 and the plan we have in place to accomplish the lofty goals we have set for ourselves. I will start some highlights of the major new wins we have recently announced starting with the big one. For those of you who don’t know back in August we announced an initial five-year contract valued at approximately $30 million to implement both Ascent Retail and Wholesale platforms in China for the global auto manufacturing giant. And I am excited to say, for the first time as well, that we have finally been given a go-ahead to announce this deal with none other than the titanic company called BMW. So BMW is our second largest customer. NetSol was chosen from a list of four potential vendors, all of which operate in the global auto and asset finance space. Our Ascent platform was selected for its unmatched reputation in successfully executing projects of similar size and scope. During the process, BMW also evaluated candidates based on technology stack, functional coverage, automation tools, digitization and platform strength, and after an extensive due diligence process, Ascent was determined to be the most effective solution in terms of addressing the multilayered regulatory, compliance and complex business processes in China. The evaluation process for the deal lasted two years. Additionally, this agreement is consistent in size and value with major Ascent implementation we previously announced in China, further providing that these extended sales cycles, which require more complexity, as well as functionality will ultimately lead…

Thank you. [Operator Instructions] Our first question is from Mike Vermut with Newland Capital. Please proceed with your question.

Hi, guys. This is Mike. Great quarter and great execution there in it.

Thank you.

Question for you. You have -- you did a phenomenal job on the cash side this quarter. I guess now you have almost a third of the company’s market cap is in cash now. What’s the outlook on it? I think you are still significantly undervalued by any metric here. Do we put more cash to work on buyback until the market realizes the value or there are other capital expenditures and whatnot we need. I assume we’re going to be generating quite a bit of cash over the next year as revenues ramp up and the cost stays under control and margins increase. So what’s the plan on the capital side?

Yeah. Mike, look this is a very strategic thing right now, as our cash has improved and I think it will remain strong given the release announced and outlook we have just shared with you. So the cash will remain strong, I’m pretty confident. Second thing is, there’s a lot of strategic things happening with the company and that is continuously invested in the company, without disturbing our cost structure that we have just implemented very effectively, but there is, for example, we are expanding our channel operation, we’re expanding our U.K. operation, going into a mainstream Central London market to really go after the potential customers there, and then we are doing a lot of work in APAC, same time we are doing a lot of work in Pakistan in terms of new lab innovation and Naeem will give some color. So it’s best to continue to follow the course and that is build the revenue, build strong bottomline, build the cash flow. And then if an opportunity comes our way, which is a synergistic or maybe opportunity for small M&A, that can augment our offering or create more accretive revenue, which we have not done for last 12 years, 13 years as you know, pretty much grown organically, we may use that cash. Now the buyback, we’ve done a few times in the past and if I would come back for buyback again and I get the Board approval, then we’ll make sure that we’ll execute all the way. So we always have that thought in mind, but definitely that is an option always available to us and we will see much more carefully after the Q1 how we perform. Although, I’m very optimistic, but I think definitely, we want to continue investing in our company, making a balance sheet strong and eventually market is responding, we have been very active. Jeff and I have been very active, and in few conferences and we are able to get some new excitement. So I believe eventually with continued fundamental performance the market will respond very well. Naeem, you want to say something?

Okay. And then…

Yeah. The only thing I can add to that would be on the R&D side, because we’re going through several paradigm shifts in the market, Mike, there is disruption, left, right and center. So we need to be ahead of some of that disruption, because some of that impacts the auto business in general, some impacts the finance companies. The shift is really not just on the business side. There are technological shifts as well. There’s a lot of talk on blockchain. There’s a lot we can do in machine learning. So we have an innovation lab, and as Najeeb read from his remarks that we have a Chief Innovation Officer. So we want to a very carefully evaluate different opportunities to develop some proof-of-concepts and see how the track with our clients. We have regular contact with our clients. So we share with them some of the developments we’re doing. So I think from time to time, we’ll hear about some developments in that area and that’s a very exciting part of the company right now. There is a lot of -- a very smart people in that group. And so that that I think would need degree of investment, but it’s going to be in line with the results we hope to achieve.

Excellent. And I got two more quick ones. On the expense side, I assume for the next 10%, 20% revenue growth is not much of fixed cost we need to add in there?

Okay. So …

I assume there will be some SG&A cost …

Yeah.

… that on the fixed side.

As I mentioned in my prepared remarks Mike and I’ve been saying that last few quarters is that, we believe the companies are scaled -- well scaled and efficient and leaner. We believe we don’t have to add a lot more human resources that is the biggest cost, anytime you get bigger projects. Now we’ve announced two major projects, of course, the BMW and the other one two years ago or so, and then others in between. I think the new projects we believe are pretty robust in terms of pipeline this fiscal year. We don’t expect to add maybe more than 20%, under 20%. For example, we’re hiring some key senior management role people in China and then a couple of new executives in London market. Those are very strategic. But there is no mass hiring in place, anything we are always looking at our HR very closely. How we can generate more or less. So, I don’t believe that our cost will go up, maximum 20%, if I can take a guess. We’ve done some math. I believe we will be much more in control structure and that we can generate -- every revenues we generate maximum of that goes onto the operating income and the net income.

Excellent. That’s great. And then last question when you look at the pipeline is the pipeline growing in size when you look out over the next year, year and a half, and number of customers, number of inquiries and what’s out there? And then through that question also with the new customer U.S. customer, are there chances of you know bringing some of the business into the U.S.?

Much likelihood of business is going to U.S. also from that large American customer that is on it. I know it, we know it. Naeem will give you color on the pipeline I think he obviously the man on the ground, Naeem go ahead?

Yeah. Well, the good news is that, some of the business that we signed and we have contracted. We’ve been able to replenish our pipeline and we are extremely busy. In fact the situation sometimes is that we’ve prioritize which opportunities we should go after. There is a huge opportunity cost with the sales cycles if you get into one particular opportunity in a big way then you need to make sure the others don’t get ignored. So you have to be very careful. So there is plenty of opportunity. There is no lack of interest. We’ve seen it growing considerably. So we are very busy especially in Asia-Pacific. We are extremely busy. This client that we signed up is already our time in the U.S. also. So there is always synergy and you know there is obviously a crossover with the client to talk to each other and certainly when there is an opportunity in the U.S. with the same client then we should be on that list, I’m pretty optimistic.

Excellent. Okay. Well, congratulation guys. It’s an exciting time for the company.

Thank you.

[Operator Instructions] Okay. Ladies and gentlemen we have -- this concludes our question-and-answer session. If your question was not addressed during the Q&A session, please contact NetSol’s Investor Relations team by emailing them at and ntwk@liolios.com or by calling them at 949-574-3860. I’d now like to turn the call over to Mr. Ghauri for his closing remarks.

Thank you. Thank you for joining us today. I especially want to thank our investors for their continued support and our most dedicated employees worldwide for their ongoing contribution. We look forward to updating you on our next call. Thank you and have a good day. Operator?

Thank you for joining us for today’s NetSol fiscal fourth quarter and full year earnings call. You may disconnect.