EX-99.1 2 v149019_ex99-1.htm
NEWS RELEASE
NetSol Technologies Reports Third Quarter
Fiscal Year 2009 Financial Results
NetSol Witnessing Improved Visibility in License and IT Services Revenue
in Current Quarter as Business Stabilizes and Refocuses on Growth
EMERYVILLE, CA – May 12, 2009 -- NetSol Technologies Inc. “NetSol” (NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK), a U.S. corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, today announced third quarter financial results for fiscal year 2009, for the period ended March 31, 2009.
Nine Month Fiscal 2009 Results

· | Revenues totaled $19.6 million, down 25% nine months year-to-date

| · | Service fees totaled $11.3 million year-to-date

| · | Maintenance fees totaled $4.8 million year-to-date

| · | License fees totaled $3.5 million year-to-date

· | Year-to-date GAAP net loss applicable to common shareholders of $7.3 million, or a loss of $0.27 per fully diluted share, com pared to GAAP net income applicable to common shareholders of $3.5 million, or $0.15 per fully diluted share, in the year ago period

· | Year-to-date EBITDA loss of $3.0 million, or EBITDA loss of $0.11 per diluted share, versus EBITDA of $6.5 million, or $0.27 per diluted share, in the year ago period

Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, commented, “While our fiscal third quarter results reflect the most challenging period of the current global economic downturn on our business, I believe we made significant progress in terms of cost reductions as well as the streamlining of our global organizational structure. The combination of our North American and European businesses into one operating segment provides improved cost efficiencies and sales effectiveness across the combined organization. Most importantly, I believe the fiscal third quarter represents the trough of the current downturn for NetSol. Improved customer and sales pipeline activity are currently providing us confidence that we have turned the corner and expect to see improved financial performance in the coming quarter s. We are very excited about our growth opportunities in China as well as traction in Latin American emerging economies.
“Strategically, during the fiscal third quarter we also made excellent progress within our SAP Practice Group as we secured a SAP services contract with a leading U.S. utility client representing excess of $1 million in projected annualized revenue and we also set the stage for the launch of our own proprietary SAP compatible software solutions. As part of our stated strategic objectives, during the quar ter we set the foundation for key strategic alliances aimed at increasing our customer penetration of key geographic markets, diversifying our global delivery platform and ultimately driving growth. As a result of these efforts, shortly after the quarter end we launched Atheeb NetSol Limited, a new NetSol majority owned software engineering and joint venture company focused on serving the growing Saudi Arabia n, GCC and Middle East ern markets. We also signed a strategic partnership with Neptune Software extending the reach of NetSol’s Financial Suite, LeaseSoft Evolve and a ttendant professional services in more than 12 African countrie s. I believe these key initiatives, with leading partners in their respective fields, provide additional growth drivers and strengthen NetSol’s global market position,” concluded Mr. Ghauri.
Page 1 of 7

NetSol reported consolidated revenues of $5.0 million for the third quarter of fiscal year 2 009, representing a 45% decline as compared to the $9.1 million in revenues reported for the same period a year ago.
U.S. GAAP (Generally Accepted Accounting Principles) net loss applicable to common shareholders for the third quarter of fiscal year 2009 was approximately $5.0 million, or a loss of $0.19 per diluted share, which compares to GAAP net income applicable to common shareholders of $2.2 million, or $0.09 per diluted share, in the sa me period of fiscal year 2008. Included in the fiscal third quarter 2009 financial results are exceptional expenses of $1.8 million dollars for a doubtful debt reserve provision, one-time redundancy charge of approximately $200,000 and $1.0 million to modify a loan agreement with more favorable terms to NetSol.
NetSol reported an EBITDA loss of $3.5 million, or a loss of $0.13 per diluted share, for the third quarter of fiscal year 2009 compared to EBITDA of $3.2 million, or $0.1 3 per diluted share, in the year ago period.
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company’s operating trends. Investors are cautioned that EBITDA is not a measure of liquidity or of financial performance under Generally Accepted Accounting Principles (GAAP). The EBITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with the SEC Regulation G, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measure, and this reconciliation is located under the financial table heading “Reconciliation to GAAP.”
Business Highlights

· | North American and European operations combined in management restructuring and streamlining of the global operations

· | Comprehensive cost cutting program to reduce operating expenses by $6 million to 8 million annually and support the company’s return to long-term profitability

· | Toyota Motor Finance China Co. Ltd. went live with NetSol Technologies suite of financial products

· | Leading global automobile manufacturer implementing NetSol Financial Suite (NFS) products for 300 deale rs in Latin American as NetSol increases market penetration in the Latin American region

· | New customer agreement from M aroof Hospital for the i mplement ation of a new Hospital Management System, expanding NetSol’s presence in the global healthcare vertical

· | NetSol’s SAP practice group secures services contract with a l eading U.S.-b ased e nergy u tility c ompany, representing in excess of $1 million in projected annualized revenue

· | NetSol joins Winshuttle’s SHUTTLEpro partner program to offer SAP Data Entry and Extraction Tools

· | Rackspace Hosting and NetSol announce solution partnership

Conference Call & Webcast Information
Following the distribution of the fiscal third quarter 2009 financial results, NetSol will host a conference call at 11:00 a.m. ET (8:00 a.m. PT) to review the quarterly financial and operational performance. Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, will host the call, which will be webcast live. The webcast and a supporting slide presentation will be made available on the investor relations section of the NetSol corporate website at www.netsoltech.com. Telephone access to the conference call will be available in North America by dialing +1 (877) 407-0782 or internationally by dialing +1 (201) 689-8567.
Page 2 of 7

An audio replay of the conference call will be available approximately two hours following the conclusion of the call and for the following 30 day period. To access the replay in North America, dial +1 (877) 660-6853 or, when calling internationally, dial +1 (201) 612-7415, using replay account code # 286 and conference ID # 322543. An archived replay of the conference webcast will also be available on the investor relations section of the NetSol corporate website at www.netsoltech.com.
About NetSol Technologies Inc.
NetSol Technologies, Inc. (NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK) is a worldwide provider of global business services and enterprise application solutions. Since its inception in 1995, NetSol has used its BestShoring™ practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Specialized by industry, these product and services offerings include credit and finance portfolio management systems, hospital/healthcare information management systems (HIMS), SAP consulting and services, custom development, systems integration, and technical services for the global Financial, Healthcare, Insurance, Energy, and Technology markets. NetSol’s commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies’ clients include Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers, and government agencies. Headquartered in Emeryville, California, NetSol Technologies has operations and offices in Adelaide, Beijing, Bangkok, Lahore, and London.
To learn more about NetSol Technologies, Inc., visit www.netsoltech.com
To join the NetSol Technologies, Inc. email communications list, visit:
http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0
NetSol Technologies, Inc. Forward-looking Statement
This press release may contain forward looking statements relating to the development of the Company’s products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “believe,” “expect,” “anticipate,” “intend,” variations of such words, and similar expressions, identify forward looking statements, but their absence does not mean that the statement is not forward looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance.
# # #
Contact – Investor Relations:
Christopher Chu
Grayling
Phone: +1 646-284-9426
Email: Christopher.chu@us.grayling.com
Financial Tables Follow
Page 3 of 7

NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)

|  | For the Three Months |  |  | For the Nine Months |
|  | Ended March 31, |  |  | Ended March 31, |
|  | 2009 |  |  | 2008 |  |  | 2009 |  |  | 2008 |
|  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |
|  |  |  |  | (Restated) |  |  |  |  |  | (Restated) |
Net Revenues: |  |  |  |  |  |  |  |  |  |  |  |
License fees |  | $ | 324,845 |  |  | $ | 2,998,867 |  |  | $ | 3,502,632 |  |  | $ | 7,769,226 |
Maintenance fees |  |  | 1,664,492 |  |  |  | 1,482,654 |  |  |  | 4,771,519 |  |  |  | 4,556,450 |
Services |  |  | 3,033,684 |  |  |  | 4,585,292 |  |  |  | 11,320,846 |  |  |  | 13,800,844 |
Total revenues |  |  | 5,023,021 |  |  |  | 9,066,813 |  |  |  | 19,594,997 |  |  |  | 26,126,520 |
Cost of revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and consultants |  |  | 2,629,081 |  |  |  | 2,620,722 |  |  |  | 7,652,671 |  |  |  | 7,342,743 |
Travel |  |  | 280,390 |  |  |  | 394,841 |  |  |  | 993,290 |  |  |  | 972,998 |
Repairs and maintenance |  |  | 81,536 |  |  |  | 99,262 |  |  |  | 290,436 |  |  |  | 332,448 |
Insurance |  |  | 43,478 |  |  |  | 30,005 |  |  |  | 135,390 |  |  |  | 153,760 |
Depreciation and amortization |  |  | 532,099 |  |  |  | 316,652 |  |  |  | 1,615,853 |  |  |  | 847,288 |
Other |  |  | 917,051 |  |  |  | 522,013 |  |  |  | 2,208,265 |  |  |  | 1,341,513 |
Total cost of sales |  |  | 4,483,635 |  |  |  | 3,983,495 |  |  |  | 12,895,905 |  |  |  | 10,990,750 |
Gross profit |  |  | 539,386 |  |  |  | 5,083,318 |  |  |  | 6,699,092 |  |  |  | 15,135,770 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 629,145 |  |  |  | 898,686 |  |  |  | 2,479,509 |  |  |  | 2,817,908 |
Depreciation and amortization |  |  | 501,239 |  |  |  | 477,630 |  |  |  | 1,476,281 |  |  |  | 1,422,181 |
Bad debt expense |  |  | 1,772,188 |  |  |  | - |  |  |  | 2,420,658 |  |  |  | 3,277 |
Salaries and wages |  |  | 773,757 |  |  |  | 1,034,784 |  |  |  | 2,697,531 |  |  |  | 2,758,434 |
Professional services, including non-cash compensation |  |  | 257,926 |  |  |  | 125,107 |  |  |  | 877,752 |  |  |  | 424,108 |
General and adminstrative |  |  | 862,623 |  |  |  | 781,828 |  |  |  | 2,693,451 |  |  |  | 2,277,022 |
Total operating expenses |  |  | 4,796,878 |  |  |  | 3,318,035 |  |  |  | 12,645,182 |  |  |  | 9,702,930 |
Income (loss) from operations |  |  | (4,257,491 | ) |  |  | 1,765,283 |  |  |  | (5,946,090 | ) |  |  | 5,432,840 |
Other income and (expenses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on sale of assets |  |  | (127,558 | ) |  |  | (891 | ) |  |  | (308,256 | ) |  |  | (33,044 | )
Interest expense |  |  | (483,501 | ) |  |  | (121,719 | ) |  |  | (983,971 | ) |  |  | (544,665 | )
Interest income |  |  | 177,771 |  |  |  | 84,431 |  |  |  | 246,607 |  |  |  | 159,869 |
Gain on sale of subsidiary shares |  |  | - |  |  |  | 1,240,808 |  |  |  | - |  |  |  | 1,240,808 |
Loss on extinguishment of debt |  |  | (1,000,000 | ) |  |  | - |  |  |  | (1,000,000 | ) |  |  | - |
Exchange gain /(loss) on foreign currency |  |  | 8,902 |  |  |  | 388,859 |  |  |  | 1,821,754 |  |  |  | 590,170 |
Other income and (expenses) |  |  | 15,378 |  |  |  | 59,031 |  |  |  | 47,518 |  |  |  | 118,944 |
Total other income (expenses) |  |  | (1,409,008 | ) |  |  | 1,650,519 |  |  |  | (176,348 | ) |  |  | 1,532,082 |
Net income (loss) before minority interest in subsidiary |  |  | (5,666,500 | ) |  |  | 3,415,802 |  |  |  | (6,122,438 | ) |  |  | 6,964,922 |
Minority interest in subsidiary - restated in 2008 |  |  | 689,584 |  |  |  | (1,159,134 | ) |  |  | (972,238 | ) |  |  | (3,288,490 | )
Income taxes |  |  | (21,594 | ) |  |  | (15,314 | ) |  |  | (79,631 | ) |  |  | (46,272 | )
Net income (loss) |  |  | (4,998,510 | ) |  |  | 2,241,354 |  |  |  | (7,174,308 | ) |  |  | 3,630,160 |
Dividend required for preferred stockholders |  |  | (33,140 | ) |  |  | (33,508 | ) |  |  | (100,892 | ) |  |  | (145,033 | )
Net income (loss) applicable to common shareholders |  |  | (5,031,650 | ) |  |  | 2,207,846 |  |  |  | (7,275,200 | ) |  |  | 3,485,127 |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Translation adjustment - restated in 2008 |  |  | (179,358 | ) |  |  | (634,280 | ) |  |  | (4,036,926 | ) |  |  | (1,065,613 | )
Comprehensive income (loss) |  | $ | (5,211,008 | ) |  | $ | 1,573,566 |  |  | $ | (11,312,126 | ) |  | $ | 2,419,514 |
Net income (loss) per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.19 | ) |  | $ | 0.09 |  |  | $ | (0.27 | ) |  | $ | 0.15 |
Diluted |  | $ | (0.19 | ) |  | $ | 0.09 |  |  | $ | (0.27 | ) |  | $ | 0.15 |
Weighted average number of shares outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 26,601,587 |  |  |  | 25,205,995 |  |  |  | 26,350,098 |  |  |  | 23,686,204 |
Diluted |  |  | 26,601,587 |  |  |  | 25,665,924 |  |  |  | 26,350,098 |  |  |  | 24,146,133 |

Page 4 of 7

NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

|  | As of |  |  | As of |
|  | March 31, 2009 |  |  | June 30, 2008 |
|  | (Unaudited) |  |  | (Audited) |
|  |  |  |  | (Restated) |
ASSETS |
Current assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,481,591 |  |  | $ | 6,275,238 |
Restricted cash |  |  | 5,000,000 |  |  |  | - |
Accounts receivable, net of allowance for doubtful accounts |  |  | 11,182,706 |  |  |  | 10,988,888 |
Revenues in excess of billings |  |  | 6,728,374 |  |  |  | 11,053,042 |
Other current assets |  |  | 2,145,522 |  |  |  | 2,406,407 |
Total current assets |  |  | 27,538,193 |  |  |  | 30,723,575 |
Property and equipment, net of accumulated depreciation |  |  | 9,463,524 |  |  |  | 10,220,545 |
Other assets, long-term |  |  | 204,823 |  |  |  | 822,672 |
Intangibles: |  |  |  |  |  |  |  |
Product licenses, renewals, enhancements, copyrights, |  |  |  |  |  |  |  |
trademarks, and tradenames, net |  |  | 12,452,357 |  |  |  | 10,837,856 |
Customer lists, net |  |  | 1,535,328 |  |  |  | 1,732,761 |
Goodwill |  |  | 9,439,285 |  |  |  | 9,439,285 |
Total intangibles |  |  | 23,426,970 |  |  |  | 22,009,902 |
Total assets |  | $ | 60,633,510 |  |  | $ | 63,776,694 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 4,833,319 |  |  | $ | 4,116,659 |
Current portion of loans and obligations under capitalized leases |  |  | 6,103,585 |  |  |  | 2,280,110 |
Other payables - acquisitions |  |  | 103,226 |  |  |  | 846,215 |
Unearned revenues |  |  | 3,358,180 |  |  |  | 3,293,728 |
Due to officers |  |  | - |  |  |  | 184,173 |
Dividend to preferred stockholders payable |  |  | 49,974 |  |  |  | 33,508 |
Loans payable, bank |  |  | 2,108,919 |  |  |  | 2,932,551 |
Total current liabilities |  |  | 16,557,203 |  |  |  | 13,686,944 |
Obligations under capitalized leases, less current maturities |  |  | 1,046,801 |  |  |  | 332,307 |
Convertible notes payable |  |  | 5,786,456 |  |  |  | - |
Long term loans; less current maturities |  |  | 416,341 |  |  |  | 411,608 |
Total liabilities |  |  | 23,806,801 |  |  |  | 14,430,859 |
Minority interest |  |  | 5,661,417 |  |  |  | 7,857,969 |
Commitments and contingencies |  |  | - |  |  |  | - |
Stockholders' equity: |  |  |  |  |  |  |  |
Preferred stock, 5,000,000 shares authorized; |  |  |  |  |  |  |  |
1,920 issued and outstanding |  |  | 1,920,000 |  |  |  | 1,920,000 |
Common stock, $.001 par value; 95,000,000 shares authorized; |  |  |  |  |  |  |  |
26,666,987 issued and 26,438,491 outstanding as of March 31, 2009 |  |  |  |  |  |  |  |
25,545,482 issued and 25,525,886 outstanding as of June 30, 2008 |  |  | 26,667 |  |  |  | 25,545 |
Additional paid-in-capital |  |  | 77,320,715 |  |  |  | 74,950,286 |
Treasury stock (228,496; 19,596 shares) |  |  | (396,008 | ) |  |  | (35,681 | )
Accumulated deficit |  |  | (40,346,904 | ) |  |  | (33,071,702 | )
Stock subscription receivable |  |  | (692,654 | ) |  |  | (600,907 | )
Common stock to be issued |  |  | 118,325 |  |  |  | 1,048,249 |
Other comprehensive loss |  |  | (6,784,849 | ) |  |  | (2,747,924 | )
Total stockholders' equity |  |  | 31,165,292 |  |  |  | 41,487,866 |
Total liabilities and stockholders' equity |  | $ | 60,633,510 |  |  | $ | 63,776,694 |

Page 5 of 7

NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)

|  | For Nine Months |
|  | Ended March 31, |
|  | 2009 |  |  | 2008 |
|  |  |  |  | (Restated) |
Cash flows from operating activities: |  |  |  |  |  |
Net income (loss) |  | $ | (7,174,308 | ) |  | $ | 3,630,160 |
Adjustments to reconcile net income to net cash |  |  |  |  |  |  |  |
(used in) provided by operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 3,092,134 |  |  |  | 2,269,469 |
Provision for uncollectible accounts |  |  | 2,420,658 |  |  |  | 3,277 |
Loss on sale of assets |  |  | - |  |  |  | 33,044 |
Gain on sale of subsidiary shares in Pakistan |  |  | 308,256 |  |  |  | (1,240,808 | )
Minority interest in subsidiary - restated in 2008 |  |  | 972,238 |  |  |  | 3,288,490 |
Stock issued for services |  |  | 227,516 |  |  |  | 48,163 |
Stock based compensation expense |  |  | 147,639 |  |  |  | 24,320 |
Beneficial feature of convertible notes payable |  |  | 17,225 |  |  |  | - |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Increase in accounts receivable |  |  | (3,934,511 | ) |  |  | (2,087,736 | )
Increase (decrease) in other current assets |  |  | 3,175,947 |  |  |  | (4,885,181 | )
Increase (decrease) in accounts payable and accrued expenses |  |  | 588,689 |  |  |  | (510,968 | )
Net cash (used in) provided by operating activities |  |  | (158,517 | ) |  |  | 572,230 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Purchases of property and equipment |  |  | (1,501,508 | ) |  |  | (1,985,651 | )
Sales of property and equipment |  |  | 13,376 |  |  |  | 120,436 |
Payments of acquisition payable |  |  | (973,758 | ) |  |  | (879,007 | )
Purchase of treasury stock |  |  | (360,328 | ) |  |  | - |
Increase in intangible assets |  |  | (5,281,642 | ) |  |  | (2,219,673 | )
Net cash used in investing activities |  |  | (8,103,860 | ) |  |  | (4,963,895 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |
Proceeds from sale of common stock |  |  | 377,421 |  |  |  | 1,500,000 |
Proceeds from the exercise of stock options and warrants |  |  | 526,569 |  |  |  | 2,800,917 |
Purchase of subsidary stock in Pakistan |  |  | (250,000 | ) |  |  | 1,765,615 |
Finance costs incurred for sale of common stock |  |  | - |  |  |  | (10,000 | )
Purchase of treasury stock |  |  | - |  |  |  | (25,486 | )
Restricted cash |  |  | (5,000,000 | ) |  |  | - |
Proceeds from convertible notes payable |  |  | 6,000,000 |  |  |  | - |
Proceeds from bank loans |  |  | 3,843,541 |  |  |  | 3,862,759 |
Payments on bank loans |  |  | (235,486 | ) |  |  | (1,245,846 | )
Dividend Paid to Preferred Shareholders |  |  | (33,876 | ) |  |  | - |
Bank overdraft |  |  | 161,134 |  |  |  | - |
Payments on capital lease obligations & loans - net |  |  | (467,397 | ) |  |  | (3,462,334 | )
Net cash provided by financing activities |  |  | 4,921,906 |  |  |  | 5,185,625 |
Effect of exchange rate changes in cash |  |  | (453,177 | ) |  |  | 44,390 |
Net increase in cash and cash equivalents |  |  | (3,793,648 | ) |  |  | 838,350 |
Cash and cash equivalents, beginning of period |  |  | 6,275,238 |  |  |  | 4,010,164 |
Cash and cash equivalents, end of period |  | $ | 2,481,591 |  |  | $ | 4,848,514 |

Page 6 of 7

NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION TO GAAP
(Unaudited)

|  | Three Months |  |  | Nine Months |
|  | Ended |  |  | Ended |
|  | March 31, 2009 |  |  | March 31, 2009 |
Net (loss) before preferred dividend, per GAAP |  | $ | (4,998,510 | ) |  | $ | (7,174,308 | )
Income Taxes |  |  | 21,594 |  |  |  | 79,631 |
Depreciation and amortization |  |  | 1,033,338 |  |  |  | 3,092,134 |
Interest expense |  |  | 483,501 |  |  |  | 983,971 |
EBITDA (loss) |  | $ | (3,460,077 | ) |  | $ | (3,018,572 | )
Weighted Average number of shares outstanding |  |  |  |  |  |  |  |
Basic |  |  | 26,601,587 |  |  |  | 26,350,098 |
Diluted |  |  | 26,695,173 |  |  |  | 26,443,684 |
Basic EBITDA EPS |  | $ | (0.13 | ) |  | $ | (0.11 | )
Diluted EBITDA EPS |  | $ | (0.13 | ) |  | $ | (0.11 | )

Page 7 of 7