Belgian network security software developer NetVision NV has reported a net loss for its fiscal second quarter, ended March 31, of 571,000 euros ($607,090) on revenues that were up 183% at 2.44m euros ($2.6m). At the pre-tax level, the loss was 789,000 euros ($836,000), compared to a profit of 139,000 euros ($148,000) in the same period last year. The net loss per share was 0.07 euros ($0.07), compared to an EPS of 18.44 euros ($19.60) in the same period last year.
NetVision said it had budgeted for a small loss during the quarter, but the final result had been worse than expected due to exceptional stock warrant expense. This, it explained, was caused by the fact that the NetVision management wished to comply fully with the US GAAP (FASB 123) and SEC regulations in order to be prepared for a possible double listing on the Nasdaq in the future.
The Louvain-based company said the inclusion of the stock warrant expenses in the second quarter was carried out on the advice of KPMG’s US market desk and resulted in an additional on-paper loss of 307,000 euros ($326,000).
NetVision’s stock made a controversial debut on Easdaq in February this year (CI No 3,596) when the sharp increase in its price on the first day of trading provoked an investigation by the exchange authority into the administration of the initial public offering. Easdaq concluded that a number of firms, both members and non-members, would appear not to have offered best execution to their clients. It informed the Belgian government’s banking and finance committee of the need to strengthen internal procedures of financial intermediaries in general, as well as instituting disciplinary proceedings against Easdaq member firms it feels contributed to market volatility by violating rules. NetVision itself escaped criticism.
