Good morning. Welcome to the NetSol Technologies Fiscal Fourth Quarter and Full Year 2019 Earnings Conference Call. On the call today are Najeeb Ghauri, Chairman and Chief Executive Officer; Roger Almond, Chief Financial Officer; Naeem Ghauri, President Global Sales and CEO OTOZ; and Patti McGlasson, General Counsel. I would now like to 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 the call for questions. 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. 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. 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. 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 the 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 a link available in today's press release. Now, I would like to turn the call over to Najeeb. Najeeb?

Thank you, Patty, and good morning, everyone. The first quarter was a strong finish to another year of consistent performance from NetSol. Operationally, throughout the year, we've continued to win new contracts with the businesses of all sizes and also announced a number of major Go-Live implementation with some of our largest international customers. Financially, we recorded about $68 million in the year, a record for NetSol, and also made some major improvements to our cost structure, which allowed us to recognize an increasing amount on the bottom line. While we successfully reached our fiscal 2019 goal of growing the top line by double-digit percentage points, I am even more encouraged by our ability to redeem such a meaningful amount of the year-over-year improvement. For the year, we recorded operating income of $6.8 million another record for our company, and an increase of 124% compared to last year. Further down the line, we nearly doubled our earnings on a per share basis to $0.74 compared to just $0.38 in fiscal 2018. And the Q4 now marks the seventh consecutive quarter of profitable result for NetSol. Obviously, the most important component of these results is a continued ability to win new business and effectively service our customers once we have gone through an implementation. This success is also the result of some hard decisions we made in the past, namely our major cost reduction initiative we put in place in fiscal 2018, which are now continually benefiting us in the present day. This theme of managing our business with an eye for the long-term is a message I will come back to later in the call. For our call this morning, I do plan to provide a high level recap of the major events from the past year before spending the remainder of my remarks discussing our growth plan in fiscal 2020. From there, our President Global Sales and CEO of OTOZ, Naeem Ghauri, will come on to discuss some of the exciting developments that have been occurring in our innovation map before finally turning over to questions. For now, I'll hand the call over to our CFO, Roger Almond, who will walk us through the financial results for the quarter and year. Roger?

Thanks Najeeb. In turning to our fiscal fourth quarter and full 2019 financial results for the period ended June 30th, our total net revenue for the fourth quarter was $17.3 million compared to $16.6 million in the prior year period. The increase in total net revenues was primarily due to an increase in total license fees of $71,000, and increase in total maintenance fees of $626,000, which was offset by decrease in total service revenue of $26,000. For all of fiscal 2019, total net revenues were a record $67.8 million compared to $60.9 million in fiscal 2018. The increase in total net revenues was primarily due to an increase in total license fees of $9.9 million and an increase in total maintenance revenues of $721,000, which was offset by a decrease in total services fee of $3.7 million. Total license fees in Q4 was $3.5 million compared to $3.4 million in the prior year period. For the full year, total license fees was $16.8 million compared to $6.9 million in fiscal 2018. The increase in license fees for both the quarter and the year was primarily due to license revenue recognized under previously announced 12-country NFS Ascent contract. NFS Ascent contract signed with a Tier 1 auto captive finance company and a major American multi-national automaker to implement our products in China, and for license revenues through sales for our regional offering in China, Australia, the US and the UK. Total maintenance fees in Q4 was $4.4 million compared to $3.8 million in the prior year period. For the year, total maintenance fees was $15.5 million compared to $4.8 million in the prior fiscal year. The increase in total maintenance fees for the year was due to the start of new maintenance agreements from customers who went live with our…

Thank you, Roger. As I mentioned in my opening remarks, we had a strong fourth quarter, which capped off another great year for NetSol with record financial results in a number of key operating metrics. We entered 2020 with a full head of steam. We are continuing to implement some of the most difficult projects in our industry with a 100% success rate, which have been great for both winning additional business with current customers and is a reference for potential new customers. Going forward, we are continuing to position ourselves effectively for the long-term through new initiatives like our recently launched OTOZ Mobility Innovation Lab, which will allow us to expand the reach of our Ascent platform into new growth opportunities. Put together, NetSol remains in an increasingly strong position today, and we are building to be in an even better, more diversified position for tomorrow. I made a comment earlier about how we are managing our business with an eye for the long-term, and I'll get into how this is informing our go forward plan in just a minute. Before that, I'll do a recap of our new wins, implementation and general operational highlights. Starting with our ongoing multiyear international deployment associated with the previously announced 12 country, 110 million contract with Daimler Financial Services or Daimler-Benz, which was signed in late December 2015. During the year, we finalized a number of major implementations with Daimler, most recently announcing in April successful Go-Live in Japan. To-date, we'll now deploy some portion of our services on this contract in seven countries since first announcing the deal back in December 2015. Each new deployment in every location has so far been a success, and we're even being able to outpace our originally anticipated timeline for completions. I'm looking forward to…

Good morning and thank you, Najeeb. While Ascent continues to be the market leader in our space with lots of growth still to come, OTOZ is a most exciting new initiative in a very long time. We believe all indications are for market research and client input but on demand mobility, including car subscription, car sharing and ride sharing, are the fastest growing segments in the global auto ecosystem. With persistent mind that we went to a drawing board a year ago and came up with a concept of OTOZ. OTOZ is a new enabling platform where OEM, auto finance companies, car dealers and cars users converge to create supply and demand for cars that are connected, insured, fueled, charged, cleaned, accessible and ready for all types of journeys, an hour, a day, a week, a month or years. You can be a provider or a user either way. A car will become a flexible changeable service, another liability that is not utilized 95% of the time. On-demand mobility is a feature of the car and OTOZ will be enabler. The OTOZ platform as well innovation lab of same name, is targeted towards auto captive finance companies within larger auto sector organization, beat operators, original equipment manufacturers and private car owners, in order to maximize the lifetime value of the auto asset by harnessing the collective power of the shared economy. The underlying technology platform is conceptualized and is built based on advancing our expected [peer] impact on the auto and fintech industries. The basic point is we want to future proof our operations to help our customers to do so, at the same time, OTOZ is positioning itself with right in the center of this paradigm shift with a cutting edge platform that will enable all vested stakeholders within…

Okay. We're now ready for Q&A, operator?

Thank you. We will now be conducting a question-and-answer session [Operator Instructions]. Our first question comes from line of Anja Soderstrom from Sidoti.

Hi, everyone. Congratulations on a solid quarter, and thank you for taking the questions. So we're very -- good to see that you delivered the double-digit top line for the year. And Najeeb, you gave some sort of color on what you're trying to do with Asia, China, and the UK and Europe. Can you give us a little bit more color on the [actual] [ph] pipeline you have and that you might see come through for the next year?

What was the last part of your question, Anja, please? It's is not coming out clear.

Yes, if you could talk a little bit about the actual pipeline that you have that might come through in the next year, that could give us confidence in continue growth for the coming year?

Naeem, you want to answer that question?

Yes. So Anja, the pipeline is as we said in the report is very robust. And as Najeeb said earlier, these procurement cycles are traditionally very long. And we cannot fix a timeline to when a certain cycle will complete into a contract. As was the case with the two very, very large wins we had, one 2 years ago and then one last year, which we already announced. We continue to engage with several clients for multi-country implementations. And these are prolonged protracted discussions. There are several factors at play, we could evaluate it [amongst] [ph] competitors and pricing considerations, and obviously the platform evaluation is also key. So we are in [withdrawal] [ph] stages with several of them. But, two or three which are at the decision making stage and we hope that those will come to fruition in the next coming quarters. The pipeline continues to be stable and robust and I think we carry all as much as we did last year, so we will see good results coming forward.

I would add one more point, Anja, to what Naeem said. I think the -- what is noticeable, which I already said in my prepared remarks, is that in last few months we have seen more activity in the European market and also the U.S. for our flagship Ascent. And that's a very encouraging sign for us, because while we've done so well in China or APAC, which we'll continue to do that, but now that we have new markets where we have some good footprint, especially in the UK, we've got a new office in central London, which cater to the very big market in that area. But also in the U.S. we've seen without yet having the people on ground, we've seen some lot of queries and RFPs that have been working on and they are looking into our new core solution. So that's very encouraging for us.

Okay, thank you for that additional color. And is this -- I would assume then so -- you also mentioned the auto industry, there is some uncertainties there just to the trade talks but you're also sort of diversifying into more away a little bit from the auto segments then maybe more into the equipment leasing and other segments?

I'm just having hard time hearing your question. Can you repeat your question?

Okay, I'm sorry. Yes. So you mentioned that you saw some maybe difficulties within the auto industry due to the trade negotiations. So then I would assume that you are diversifying into other segments as well, and not just focusing on the auto and like how should we look at that diversification?

Yes, thank you for doing that. Look, Anja, you're right. We've said it very clearly in my prepared remarks and then Naeem also mentioned about the innovation strategy, which is right on track, so there are many areas. We are going to make sure that we remain as a focused product solution company, which we have been for many years. But now we're also looking into partnerships, joint ventures or perhaps M&A and in synergistic, which could be complementary to our core business, it could be North America, it could be Europe, it could Asia Pacific, we're open to all these ideas. And I think time has come for the company to look beyond one product vertical only. That is exactly what if you look at, if you follow the trends for last one year, all the activities in the OTOZ innovation lab to meet with the new direction that is market to telling us how to be ready for the wave, which will help the company to make the right decision to make our customers stronger to grow our business, both in the complimentary but also anything which makes lot of sense for our business to have that accretive growth, both top line and bottom line, we'll look into those opportunities from time to come. So I think many options available to us and we're exploring all of them.

Okay, thank you. And with your track record, I saw that Alfa was coming out with saying that they had problems implementing their system. So are you seeing that from other competitors as well? And do you hear clients coming to you because of this or...?

Yes, Naeem will be right person to answer that. Naeem?

I'm sorry, Anja, I really -- I didn't understand the exact question. Can you please repeat?

So you have an excellent track record of implementing even ahead of time at the 100% success rate, while your competitors seems to have a little bit more troublesome succeeding in their promises. So are you seeing maybe [indiscernible] a lot of clients coming to you to sort of transfer into you, and [indiscernible] competitive edge?

Yes. First of all, let me just focus on our own track record, which is in 22 years, we have never failed to deliver a single project. Every single project we contracted and we signed, we delivered and our customers are using the system and like. And same is the case with Ascent and the new implementations we're undertaking. Recently, there was a very important critical go-live in China for one of our premier clients. At the same time, our competitors continue to struggle. I think it's due to the complexity of the business that we are supporting the auto finance business traditionally is a very complex business with a very complex back office and so on. So unless you know the local conditions and you know local compliance and regulation and local business process, it is very hard to succeed. And the reason we succeeded that we have a very strong set of resources and experts who are really very-very experienced in all local challenges. So we have teams on the ground in China, Thailand, Australia, Indonesia, and when we compete against something that's just come in the market to implement, and they don't really have a presence in those markets, they really struggle. That continues to be the case. We have on several accounts where previous vendors could not deliver, where we came in and then had success. And we think that is continuing to be the case, because our competitors probably don't invest as much into their people and on local presence as much as we do.

So with all that being said, Najeeb, you gave some color on the first quarter outlook. Is there any - could you give any expectations for the full year? I know it's very choppy and uncertain. But with the insights you have of this pipeline and opportunities how should we think about the full year growth for 2020?

I mean, look as company management I think it's very prudent and judicious to be mindful of the shift gaining dynamics in our industry, all over the world, plus all the macro challenges that I think everybody's facing, nevertheless, as I said in my remarks that we have healthy pipeline, we have lot of activities in, not just in APAC alone but also in the UK and in of course, in U.S. and Canada. That gives us good signal, good hope that we can be very positive in terms of growth this fiscal year as well. And I think the better way to give a specific range is it would be to see how we're tracking with the H1 for six months. We have many deals out there in the final stages for decision making or some in the middle stage with further demos and discussions with the customers. But the main thing is there are more people, there are more companies looking into our solution, the main business flagship Ascent than as a year ago. So that is a much more, I think, compelling sign for us that we continue to grow, both top-line and the bottom-line. But at the same time, company is very proactive in making sure that we are looking at all other opportunities that will make a very dependable, predictable business by adding some new opportunities within the group and same technology, maybe some new idea that we have maybe not focused in the past, but now we have ability and focus to generate new opportunities in the coming months and years.

And then some housekeeping questions. So you mentioned you're looking to hire more. So should we look at your salaries going up? And also your G&A was up a bit sequentially for the fourth quarter. What drove that and how should we look at that, going forward?

I think, look, there is -- the good thing that I did mentioned, me and Roger, in our 10-Ks and Qs for the last couple of quarters that this company is now looking at the very strategic positions hiring, whether they're in China or in UK, or in US. And in Pakistan, where we have our delivery engine, we are in a pretty good efficiency level in terms of our strength of the programmers, developers and so forth. But currently looking at very important positions, which should help us achieve our long target vision. I don't think there's any other major expenses other than OTOZ is a new place we are investing. The innovation lab and U.S. and other markets like UK, we are consciously investing to improve our position, our team in the local market at the same time, we should be ahead of the competition, because one thing good about the company is that we don't wait for things to happen, we always proactively respond back to the challenges facing in the market. And we make sure -- always make sure we are ahead of the curve compared with our competitors, that's one reason remains that and we're very effective in meeting the need and time of our customers. And that reference to us is very important for us to continue to grow our revenue and control our cost structure.

Thank you for the color. I'm going to jump back in line.

[Operator Instructions] At this time, 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 ntwk@gatewayir.com, or by calling them at 949-574-3860. I'd now like to turn the call back over to Mr. Ghauri for his closing remarks.

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

Thank you for joining us today for NetSol's fiscal fourth quarter and full year 2019 earnings call. You may now disconnect.