Netsol Technologies Inc (NASDAQ:NTWK) Q4 2020 Earnings Conference Call - Final Transcript
Sep 28, 2020 • 09:00 am ET
As many of you listening this morning will remember, we entered fiscal 2020 -- coming off a record top and bottom-line performance -- in the strongest position in our history of 2019 results. At the same time, we introduced a multi-prong growth strategy design during the regular economic conditions to diversify and expand our total and recurring revenue stream, ultimately propelling NetSol to its next phase of commercial prosperity.
However, over the past few months, we, like most businesses globally, were forced to adapt to a radically different working environment than we had planned. As an international organization, NetSol directly witnessed the influence of COVID-19 as it quickly spread through many of our operations around the world, impacting families, our employees, communities and the global economy.
During this period of increased uncertainty, we have closely monitored the evolving situation through all available information channels, including the latest news, reports, as well as updates from the CDC, the World Health Organization and other regulatory authorities.
Our operations in the second half of this year were meaningfully impacted by the global slowdown occurring in many of the verticals we serve, including the greater leasing, finance and automotive industries.
Despite these unfavorable conditions, we have continued to forge a path ahead, and in the meantime have taken decisive actions to reduce costs. We also build up a strong cash position over the years, which gives us additional backing going forward.
On the sales and implementation side of things, last month we also went live with the first North American customer, SCI in Canada, for our subscription, cloud-based NFS Ascent offering, which we expect to leverage towards additional agreements in the future. At the same time, our European operations are also continuing to perform nicely. From a total contract price perspective, some of the highest value opportunities are currently coming out of our Netsol European region. Furthermore, NetSol North America or Netsol European region combined, now represents a larger pipeline of contract opportunities compared to Asia-Pacific region, which is a major achievement in a short amount of time.
Overall, with several COVID-driven purchasing delays beginning to move slowly ahead, we also have a line of sight into a significant pipeline of opportunities in the coming year. It continues to get a tough market, but the ice seems to be thawing so to speak.
For the rest of today's discussion, I'll provide a high-level recap of the past quarter and more recent updates before spending the rest of our discussion on our current market outlook through the lens of our three-pronged growth strategy.
Prior to do that, I will hand the call over to our CFO, Roger Almond, who will walk us through the financial results for the quarter and year. Roger?
Roger K. Almond
Thanks, Najeeb. Turning to our fiscal fourth quarter and full-year 2020 financial results for the period ended June 30th, our total revenues for the fourth quarter were $13.6 million compared to $17.3 million in the prior-year period. The decrease in total