ORLANDO, Fla., Oct. 9, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has issued a Second Quarter 2007 Research Update on Zanett, Inc. (Nasdaq:ZANE).
Joe Blankenship, MBA, RedChip Research Analyst, wrote in the report:
"Zanett, Inc. (Nasdaq:ZANE) reported its operating results for its second quarter of fiscal year 2007. Revenues for the quarter ended June 30, 2007 were $12.5 million, up 9.6% from the $11.4 million reported in Q2 2006. For the six months ended June 30, 2007, the Company reported revenue of $24.4 million, up 11% from the $22.1 million reported for the first half of 2006. For Q2 2007 the Company essentially operated at break even. Adding back non-cash charges of depreciation, amortization and charges for employee stock and options awards, the Company had a positive EBITDA of approximately $300,000. The reported loss per share for the quarter was ($0.02), all related to financing charges on the Company's debt.
"We are maintaining our BUY recommendation with a 12 month price target of $3.60 per share. Our price target is derived by using a 30x multiple of our estimate of $0.12 per share earnings for FY 2008. The Company continues to demonstrate it ability to grow its business organically and through acquisitions. After the next reported quarter we will again re-examine our model to determine if there is reason to revise estimates and/or our price target. Our current revenue estimate for FY 2007 is $50.4 million, with an EPS estimate of a loss of ($0.04)."
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http://www.redchip.com/visibility/about.asp?page=requestZANE_Q2_2007&from=newsZANE10092007
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Disclosure
The analysts contributing to this report do not hold any shares of ZANE. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. Zanett, Inc. is a client of RedChip Visibility, a division of RedChip Companies. ZANE paid RedChip Visibility $28,000 for the RedChip Visibility Research Program, which includes this report.