NETSOL Technologies Q1 2027 Earnings Call Transcript

NETSOL Technologies (NASDAQ:NTWK) reported first-quarter financial results on Thursday. The transcript from the company’s first-quarter earnings call has been provided below.

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Summary

NETSOL Technologies reported a 9.3% increase in revenue for the first quarter of fiscal 2027, reaching $16.4 million, with a significant improvement in gross margin to 50.5% from 39.4% a year ago.

The company’s strategic initiatives focused on expanding the Transcend platform, embedding AI across operations, and growing with customers, highlighted by a significant customer migration of BMO from LeasePak to Transcend Finance.

Management emphasized the growing North American market, reporting a 25.5% year-over-year growth in the Americas and a strong sales pipeline, while maintaining a focus on optimizing headcount and prioritizing core strategic areas.

Operational highlights include approval by Mercedes-Benz USA for digital retail services and the implementation of AI tools across various functions, contributing to improved operational efficiency.

The outlook remains positive with a focus on sustainable growth, strategic M&A opportunities, and a potential share repurchase by the company’s Pakistan subsidiary, indicating ongoing efforts to enhance shareholder value.

Full Transcript

OPERATOR

Good morning and welcome to NETSOL Technologies’ first quarter fiscal year 2027 earnings conference call. On the call today are our Founder and Chief Executive Officer of NETSOL Technologies, Inc., Najeeb Ghauri; Global Head of Sales and Group Managing Director of Europe, Asad Ghauri; Chief Financial Officer, Sardar Abubakr; and Senior Vice President, Legal and Corporate Affairs; General Counsel and Corporate Secretary, Patty McGlassan. Also available for the Q&A portion are Chief Accounting Officer, Roger Allman, and Chief Marketing Officer, Eric Wagner.

I will now turn the call over to Patty, who will provide the necessary disclaimer regarding the forward-looking statements made during today’s call. Patty, please go ahead.

Patty McGlassan (Senior Vice President, Legal and Corporate Affairs; General Counsel and Corporate Secretary)

Thank you. Good morning everyone and thank you for joining us today. After we review the Company’s business highlights and financial results for the first quarter of fiscal 2027, we will open the call for questions. Before we begin, I’d like to remind you that our remarks today will include forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our fiscal 2027 guidance and other matters that are not historical facts. These statements are subject to risks and uncertainties that could cause actual results to differ materially.

We encourage you to review the cautionary statements and risk factors contained in NETSOL’s press release issued earlier today, as well as our filings with the Securities and Exchange Commission, including our most recent Form 10-K and quarterly reports on Form 10-Q. And I would also like to note that today’s discussion will include certain non-GAAP financial measures. A reconciliation of these measures to their most direct comparable GAAP figure can be found in the press release issued earlier today.

A supplemental investor presentation is available through the webcast link and in the Investor Relations sections of our website at ir.netsoltech.com and has been furnished as an exhibit to the Form 8-K we will file with our press release issued this morning. Please remember that this call is being recorded and will be available for replay on our website at ir.netsoltech.com and through a link included in today’s press release. At this time, all participants are in listen-only mode.

Following management’s prepared remarks, we will conduct a question and answer session. I will now hand the call over to our Founder and CEO, Najeeb Ghauri.

Najeeb Ghauri (Chief Executive Officer)

Thank you, Patty. Good morning everyone and thank you for joining our call today to review our results for the first quarter fiscal 2027 that ended September 30, 2026. Let me start with what matters. We grew revenue, we expanded gross margin and we made money this quarter. A year ago in the same quarter we lost money. I’ve said for a long time that as more of our revenue becomes subscription, the margin would improve, and you can see it in these numbers. It is a good start to the year. I’m not going to overstate a quarter, but it is a good start.

The other thing I would point out is that this did not come at the expense of the pipeline. We kept selling; our largest customers kept choosing to do more with us, BMO being the example. Asad will talk about it in a minute. That is what gives me some confidence that this is not a one-quarter result. On our last call I laid out four priorities for the year: scaling Transcend Retail across the U.S. dealer market; embedding AI across our products and our operations; upgrading our legacy install base onto Transcend; and growing with our customers as they expand into new markets. I want to give you a quick sense of where we stand on each.

On Transcend Retail, since the quarter ended, Mercedes-Benz USA approved NETSOL as a digital retail provider for its dealer network, along with the new dealer go-lives Asad will cover. That is the kind of proof point we were looking for on the product. Both Transcend Finance and Transcend Retail saw substantive enhancements this quarter. In Transcend Finance we upgraded credit application and servicing and improved reconciliation with customers’ accounting systems.

In Transcend Retail we improved the customer journey from vehicle and financing comparison through a faster credit application and gave dealer teams better tools to engage customers at the moment they are ready to buy. On AI, the progress this quarter was inside the company. We brought AI-enabled tools into live use across finance, audit, employee support, marketing, sales and talent acquisition under a formal AI policy and training program. In the product, credit decisioning and document processing capabilities are available in Transcend Finance and we are extending AI into other areas of the platform.

On the install base, BMO is an example this quarter — a 30-year customer moving from LeasePak to Transcend Finance — and there are more of those conversations underway. On growing with customers into new markets, while I don’t have anything new to announce today, we are in active discussions with existing customers and prospects who are expanding operations and I expect to have more to say on that in coming quarters. And we made some changes to the team itself. Faizan Ghori, our former Chief Strategy Officer, was named President of NETSOL Technologies Americas, while Peter Minshall and Omar Kadri relocated to the UK office to put more of our senior leadership closer to our European operations. Since the quarter closed, Michael Ramsey joined as VP of Sales for Transcend Finance in the Americas.

I now turn the call over to Asad Ghauri to talk through what drove the commercial activity this quarter.

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

Thank you, Najeeb, and good morning everyone. As Najeeb has stated, I want to start off with BMO, key example of our focus in the U.S. market. You know we’re seeing a pattern across the across our customer base of upgrades from legacy platforms and into Transcend Finance. BMO being a classic example in the U.S., a 30-year relationship that has now migrated into another couple of decades of relationship and partnership as we move forward. If you were on the last call last quarter, you heard about a similar set of moves with Tier 1 global auto captives extending its contracts with us.

Tierra Leasing Thailand upgraded its platform. A multinational bank in the UK renewed their engagement with us. BMO obviously is the newest entry to this list. Long-standing customers are choosing to bring their relationship with us forward onto our platform rather than looking elsewhere, and that installed base expansion is part of our commercial strategy as we move forward. On digital retail, Transcend Retail went live with two new U.S. dealerships this quarter: Atlanta Autos and Royal Coach RV. Our commercial priorities have not changed: convert the pipeline in front of us and keep growing inside the customer base we already serve. With that, I’ll hand it over to Sardar to walk you over the numbers.

Sardar Abubakr (Chief Financial Officer)

Thank you, Asad, and good morning everyone. In our annual call, we emphasize the recovery in operating performance, the quality of earnings and cash conversion. I will follow that same framework today with particular attention to the working capital cycle and the drivers of our margin improvement. Revenue for the quarter increased 9.3% to 16.4 million from 15 million a year ago. On a constant currency basis, revenue was 16.5 million. Subscription and support revenue grew 6.1% to 9.5 million, representing 57.9% of total revenue compared with 59.7% a year ago. The lower percentage reflects faster growth in services and license revenue in the quarter, not a decline in subscription and support services. Revenue, which are related to the product, increased 6.3% to 6.4 million and license revenue was approximately 0.55 million.

Gross profit rose to 8.3 million from 5.9 million and gross margin expanded by more than 1100 basis points to 50.5% from 39.4%. Operating income was 0.4 million and operating margin of 2.5% compared with an operating of 1.8 million and a negative 12.2% margin a year ago. Consolidated adjusted EBITDA was 0.89 million, a 5.4% margin compared with negative 1.35 million or negative 9% a year earlier. Adjusted EBITDA attributable to NETSOL Technologies was 0.48 million compared with negative 1.66 million.

Consolidated net income was 0.53 million and net income attributable to NETSOL Technologies was 0.16 million, or $0.01 per diluted share compared with the loss attributable to NETSOL Technologies of 2.36 million or $0.21 per share a year ago. Net income attributable to non-controlling interest was 0.37 million compared with 0.14 million, reflecting higher profit at our Pakistan subsidiary. Historically, now the first quarter has been a building block for stronger growth throughout the year. First quarter revenue was $12.7 million in fiscal 2023, $14.2 million in fiscal 2024, $14.6 million in fiscal 2025, $15 million in fiscal 2026, and $16.4 million this quarter, the highest first quarter revenue across those five years. Subscription and support revenue grew from 6 million in the first quarter of fiscal 2023 to 9.5 million today. On margin, first quarter gross margin was about 43% in fiscal 2024, 45% in fiscal 2025, and 39.4% last year against 50.5% this quarter.

We view that as progress, of course not as a basis for extrapolating any single quarter. The gross margin improvement and the positive operating margin reflect revenue mix, delivery discipline and the timing of costs. On the cost side, the main factor was capitalization of approximately a million dollars of qualifying software development compared with none a year ago. Lower headcount and tighter resource and overhead management also contributed notably, as did the timing of salary revisions, which is a benefit that will not repeat every quarter.

On the headcount perspective, it was 1272 at September 30 compared with 1370 at June 30 and 1442 a year ago, a reduction of about 7% in the quarter and 12% year over year. While revenue increased, we would caution against annualizing any one quarter. License mix, implementation milestones, resource utilization and development capitalization all affect reported margin. Our focus is sustainable gross margin, positive operating leverage and consistent cash conversion.

Cash and cash equivalents were 19.7 million at 30 September compared with 27.1 million at June 30. Operating cash flow was negative 5.6 million compared with positive 5.3 million a year ago. I’d like to shed a little more light on this. The drivers were working capital timing: contract liabilities decreased 3.4 million, contract assets increased 2.6 million and accounts payable and accrued expenses decreased 1.5 million, partially offset by a 1.1 million decrease in accounts receivable.

In the fourth quarter we billed and collected ahead of delivery and in this first quarter we delivered against those billings. We also invested 2 million in property, equipment and capitalized software development, compared with roughly 0.5 million a year ago. Based on current billing and collection expectations, we anticipate that a meaningful portion of these timing differences will reverse during the remainder of the fiscal year. Although the precise timing depends on customer milestones and payments, we are tracking contract assets, billing milestones, deferred revenue, receivables aging and collections at the customer level.

This is a priority for management and we will report on progress in subsequent quarters. As we noted in September in our annual call, we are evaluating ways to improve the conversion of consolidated earnings into earnings attributable to NETSOL Technologies shareholders while respecting the rights of all shareholders and applicable regulations. In that context, on October 30, the board of NETSOL Technologies Limited, our Pakistan listed subsidiary, publicly proposed a repurchase of up to 4 million of its own shares, approximately 4.45% of its issued share capital, to be held in treasury and funded from the subsidiary’s distributable profits.

The proposal is subject to approval by the subsidiary shareholders at a meeting on December 3 and to regulatory requirements. It is a subsidiary-level proposal, not a repurchase of NTWK shares. If implemented, it may change the effective ownership economics depending on actual purchases and the treatment of treasury shares, but we are not assigning a financial benefit or assuming a reduction in non-controlling interest at this stage. Any impact will be evaluated and disclosed as appropriate.

Separately, on October 1, 2026, the Board of NETSOL Technologies Europe Ltd. began evaluating strategic options for its subsidiary Virtual Lease Services Ltd., including a potential sale or wind down. Though no plan has been approved or agreement executed, VLS revenue for the three months ended September 30, 2026 represented 1.7% of consolidated revenues and its total assets represented 1.3% of total consolidated assets. If a sale or wind down is completed, the Company may recognize a treatment on disposal and incur exit-related costs which cannot be estimated at this time.

Overall, this is part of our process to simplify and prioritize our strategic efforts and our capital allocation. Our priorities are consistent with the annual call: advancing Transcend Finance modernization, scaling Transcend Retail in the United States, strengthening execution in key markets and applying AI where it improves customer outcomes and productivity. We remain disciplined in capital allocation, balancing investment in core platforms and delivery with selective consideration of partnerships, acquisitions and structural simplification, and we will communicate material decisions when appropriate.

Noble Capital Markets initiated company-sponsored research coverage of NETSOL Technologies in October, consistent with our objective to broaden institutional engagement. In summary, revenue grew 9.3%, subscription and support reached 9.5 million, gross margin expanded to 50.5%, operating margin was 2.5% against negative 12.2% a year ago and consolidated adjusted EBITDA improved to 0.89 million. Furthermore, the cash and cash equivalents balance is consistent with the cash balance of NETSOL Technologies over the last 12 quarters. Alongside these improvements, we are managing working capital timing and maintaining the priorities we set out in September.

Implementation and license timing can create quarterly variability, so we will assess progress across multiple quarters rather than any single period. Thank you. I will now hand the call back to Najeeb.

Najeeb Ghauri (Chief Executive Officer)

Thank you. Operator, we are ready to take questions, please.

OPERATOR

Thank you. We will now be conducting a question and answer session. If you would 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. You may press star two if you would 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 keys. One moment please, while we poll for questions.

Thank you. Our first question comes from the line of Greg Burns with Sidoti. Please proceed with your question.

Greg Burns (Analyst)

Morning. When you move a customer like BMO from LeasePak to Transcend, how does that change the economics for you? Maybe in terms of margin and revenue potential from that customer?

Najeeb Ghauri (Chief Executive Officer)

Yes, I think I’ll let Asad answer the question. Go ahead, Asad.

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

I don’t want to be specific, but of course we see a positive bump on subscription and other revenue sources that we look at. Again, obviously we’re in the implementation phase, so I wouldn’t want to comment on a specific number, but we would see a positive impact of that as we move forward based on where the BMO organization is.

Greg Burns (Analyst)

Okay, maybe you don’t have to speak specifically to BMO, but when you move in general these legacy customers to the Transcend platform, is there a transition?

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

In general, so BMO is in the top end of our customer base accordingly similar customers around the globe. So on an average we’re looking at a 10 million upside for the overall deal over a five-year period.

Greg Burns (Analyst)

Okay, thank you. And the VLS wind down or divestiture, are there any other parts of your portfolio—are you looking to prune any other parts of your portfolio? Are there any other opportunities there to monetize assets?

Najeeb Ghauri (Chief Executive Officer)

Well, I think so far we’re in pretty good position. I think I’m very confident we made the right decision about the VLS. And of course we closely monitor all our operations, subsidiaries and projects and from time to time we come back and share with you the progress. So right now we’re pretty good with the way we have, right, the whole organization and it is pretty much performing to our expectations.

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

Naj, if I may just add as well to that question. So our objective is to consistently evaluate opportunities for us to prioritize our capital allocation. It’s important to understand—and you will find this in our investor relations website and public information—that our industry around equipment finance is growing at a double digit CAGR and it’s significant amounts with growth across all markets. With that we believe that we have a fantastic opportunity to invest in what I always call core and close to core adjacencies.

And we firmly believe that this will add to the value creation for NETSOL Technologies shareholders across the board.

Greg Burns (Analyst)

Thank you.

Najeeb Ghauri (Chief Executive Officer)

Just to add to what Asad just said, as we’ve laid out a very clear strategy, anything non-core we are looking to review and if it doesn’t fit in the profile of how we see strategically the company moving forward, those will be addressed accordingly whether it be VLS or others.

Greg Burns (Analyst)

Okay, thank you.

Najeeb Ghauri (Chief Executive Officer)

Thank you.

OPERATOR

Our next question comes from the line of Michael Kopinski with Noble Capital Markets. Please proceed with your question.

Jacob Mutchler (Analyst)

Hi, thank you for taking my question. It’s Jacob Mutchler on for Michael this morning. So my first question is, could you just talk about how the North American sales pipeline is developing and what you’re seeing in terms of demand and customer sales cycles? Thank you.

Najeeb Ghauri (Chief Executive Officer)

Yeah, I can say a couple of points that Asad is also pretty closely watching it. It’s the best time for us now this year, next year that we have seen growing pipeline, tremendous interest from the U.S.-based customers. Obviously we have a pretty matured history and I personally met our BMO team just a couple of months ago in Milwaukee and I was really happy to see the excitement of the relationship we have had so many years with BMO and now they’re growing further with us.

So there’s many other deal in pipeline. So it’s pretty good time for the company in North America. You want to add more, Asad?

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

Just to add to what Mike said, Najeeb said, I just want to be clear that the US is a key market for us. It is a strategic focus as we move forward from a growth perspective. And a lot of the company’s focus is ensuring that, like BMO, we have conversions of existing customers that we potentially have in the pipeline. But we’ve got a solid pipeline of prospects that are engaging with us formally through an RFP process that the teams are working on cyclically.

I just want to be clear that these cycles in our core business are long, elongated cycles, whereas, as we’ve stated previously, digital retail, which is a different subset of the ecosystem that we service, has a different connotation for us. And you will see adoption numbers increase as we move forward in this fiscal year and the following fiscal year.

Sardar Abubakr (Chief Financial Officer)

Asad, can I just add to that, echoing the comments made by Najeeb and Asad, you will see certain facts in our 10-Q. So in this quarter the North American market for us is actually outpacing the growth of NETSOL overall. So in this quarter we have seen the Americas grow at 25.5% year over year and its share of revenue contribution to the group has also increased to 16.1%. So you would recall that in my talk a little earlier I mentioned that our revenues overall grew by 9.3% while Americas grew at 25%.

So it is empirically our fastest growing market. Of course I cannot guide that the same growth rate will continue. However, we are very optimistic on the health of our sales pipeline in North America.

Najeeb Ghauri (Chief Executive Officer)

We do have a strategy. I’ll let both Abu and Asad — they’re quite actively involved in some of certain opportunities, especially…

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

North… So I’ll come in and then Abu can, I guess, finish off, as they say. So yes, M&A is a key focus area for us. I think there are interesting discussions in play — not saying that they’re all in any kind of final stage or anything — but within asset finance we are positioning ourselves to be able to do a couple of M&As this fiscal and the following fiscal. So it is a strategic focus for us as we move forward. Abu, if you want to add something.

Sardar Abubakr (Chief Financial Officer)

No, I think really well covered and I echo that sentiment. I would probably just add that the US being our home market is a priority for M&A and we are also exploring opportunities across Europe. In terms of the kind of customer profile, as Asad stated publicly, we are looking at what we call core or close-to-core adjacencies. Given that we are an ecosystem player in the industry — we do everything from originations to contract management, wholesale and of course digital retail — under our Transcend Finance and our Transcend Retail platforms, we believe that there could be numerous plug-in opportunities to our growth engine.

We are pursuing them and as there are any material developments we will keep the markets informed.

Najeeb Ghauri (Chief Executive Officer)

Thank you, Sardar. Operator, we’re now ready to take questions. Any more comments? Asad, you want to say before Q&A?

OPERATOR

As a reminder…

Najeeb Ghauri (Chief Executive Officer)

You’re good. If there are no more questions. Okay, good, good. Operator, sorry.

OPERATOR

As a reminder, if you would like to ask a question, press Star one on your telephone keypad. Our next question comes from the line of Todd Felty with StoneX. Please proceed with your question.

Todd Felty (Analyst)

Hey, congratulations, Najeeb and your team, on the progress you made and improved margins. Just wanted to touch on the headcount. I know it’s gone down from, I think, about 1,500 over a year ago and I think we’re at 1,272 as of September 30th. Is there a target that you’re looking at to reduce that headcount to? And how will that affect the margins and the gross margins? I know in the last call you’d expected margins to be at a minimum 50% and you hit that target.

And how will they improve down the road?

Najeeb Ghauri (Chief Executive Officer)

First of all, let me thank you again, Todd. You’ve been a very loyal and committed long-term investor and we appreciate your loyalty. I think — good question. I’ll have specifically from Asad, and they’ve watched the numbers very closely, and we’re definitely looking into a leaner organization and bottom line is our focus along with the top line. So go ahead. You want to add something, Asad?

Asad Ghauri (Global Head of Sales and Group Managing Director of Europe)

Yeah, yeah. I’ll just start by saying headcount is a key focus area for us. Obviously, if you understand our business, then headcount is a major contributor to our cost. So it is publicly being looked at. Obviously we want to achieve numbers that I don’t want to just push out. But we are looking at at least a 20% reduction from where we are in the coming months and years. But that is subject to the space we operate in — the tier one captive asset finance space, like BMOs and others. When we get into those kind of engagements, they become huge programs. They require a lot of resource commitments on site, as they say. So it’s not a reflection of what goes on in Pakistan. And that for now is something that hinders our ability to be aggressive in how we take on these headcount reduction topics.

So we are prudent. Abu Bakr works closely with the global teams, ensuring that we are wary of the numbers that we carry, and we’re constantly challenging ourselves and the various players in the business to ensure that we get to numbers where the margins start to look a lot better — not just for the business but for the investor community, as you see it. If you want to add…

Sardar Abubakr (Chief Financial Officer)

Asad, if I could just add to that — and I think a very thorough perspective. So, Todd, I’d like to just add three points to this. First is just to make sure that the markets and the investors and you fully follow that the headcount reduction exercise is not actually, as it may appear to be, a cost reduction exercise. We are reprioritizing resources and capital where we believe the highest growth opportunities and value creation lie. And as a result of this we have sunset or actually significantly reduced service lines that had lower margin, lower growth potential.

That’s point number one. Number two, we believe that there may be a misunderstanding in the markets around the services part of our revenue profile. When you look at our revenue profile and you see the services line, it’s important for me to emphasize that that is primarily — other than a few minor details — primarily related to our own product, services related to our product. And hence we are committed to be a part of a product-based agile organization and not have a revenue per employee that mirrors a services organization in the traditional sense — companies that do not have their products, the companies that have to go and search for individual development projects and then move from project to another. Our objective is to be an agile product-based organization and, as part of that, Asad mentioned a number. Of course, please do regard that as illustrative.

We will continue to assess where we believe that we need to invest and where we need to deprioritize in terms of headcounts.

Todd Felty (Analyst)

Okay, that’s really good information. Does that kind of explain why SG&A went up a little bit still from $7.5 to $7.7 million — some of the huge programs you talked about? And as you pursue other opportunities, do we see that SG&A growing despite the headcount, or can you give a little color on that?

Sardar Abubakr (Chief Financial Officer)

Sure, sure, sure. Absolutely. I just wanted to… Sorry, go ahead. One, one. Please go. There’s a lag somewhere, so that’s all good. Please continue. Sure. Apologies. No. So, Todd, we are expecting that our margins, when you compare our SG&A versus revenue, will continue to improve. And I think that is an objective that we’ve outlined and you will continue to see results on that. The increase that you see at the moment of 2.2%, when you consider that as a percentage of the revenue growth, you will see that there is an improvement.

Having said this, I’d just like to again mention to you and everyone on the call that we may have quarter-to-quarter fluctuations, but over a midterm basis, over an annualized basis, we’re confident that you will continue to see us executing on our strategy, which will mean improved margins, improved SG&A over revenue, and improved operating income margins as well.

Todd Felty (Analyst)

Thank you for taking my questions. That’s really helpful.

Najeeb Ghauri (Chief Executive Officer)

Thank you, Todd.

OPERATOR

We have no further questions at this time. Mr. Quarrey, I’d like to turn the floor back over to you for closing comments.

Najeeb Ghauri (Chief Executive Officer)

Thank you very much, operator. I want to thank you all for your questions. We are very upbeat and excited about this fiscal year and the coming years. We are pleased with the progress we made this quarter and we have remained focused on building on it as we move through the rest of fiscal 2027. Before we go, I want to thank our colleagues around the world for the work behind the quarter’s results, especially today’s call — Abu and Asad, of course. And thank you all for your time today and for your continued interest in NETSOL. Have a good day.

OPERATOR

Ladies and gentlemen, this does conclude today’s teleconference. Thank you all. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

Najeeb Ghauri (Chief Executive Officer)

Thank you, Alberta, for your work. Appreciate it. Bye.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.