NETSOL Technologies Provides Updates on COVID-19 Impact and Response

CALABASAS, Calif., April 20, 2020 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, is issuing updates on the Company’s operations and sharing details of its response in light of the ongoing impact from the COVID-19 global pandemic.

Employee Safety
The Company is closely monitoring the evolving situation through all available information channels, including the latest news reports as well as updates from the Centers for Disease Control (CDC), the World Health Organization (WHO) and other regulatory authorities.

To ensure the health and safety of its employees, NETSOL has restricted all non-essential travel indefinitely and has instituted a mandatory work-from-home policy for the majority of its global workforce. NETSOL is also instructing all employees to notify the Company if they are displaying any flu-like symptoms or experiencing the onset of a potential sickness.

Financial Impact
Similar to the majority of global industries, leasing and finance operations as well as the related industries they serve, have been meaningfully impacted by the effects of COVID-19. The Company expects to incur a material impact in revenues for the fiscal third quarter and the remainder of fiscal 2020, the extent of which cannot currently be quantified.

NETSOL Response
In an effort to mitigate the ongoing financial impact, employees of NETSOL and its subsidiaries have taken an average reduction in salary of nearly 20% company-wide, including the Company’s management team and Board of Directors. Strategic programs and new initiatives such as Otoz and the Company’s Innovation Lab continue to operate on a reduced allocation and remain operational.  Additionally, budgets for marketing, travel, and other postponed operational activities have been substantially reduced, resulting in expected costs savings of $5 million on an annualized basis. Should business conditions improve during this timeframe, these estimates are subject to change.

The Company’s proactive response efforts to-date have allowed NETSOL to retain all employees at this time. As a digital-first organization, the Company has taken steps to ensure that its business continuity plan remains intact and that all implementations and deliveries remain on schedule. The Company’s maintenance and support teams are working full-time for its international customers without interruption.