4th Quarter 2007 Revenue to Rise 8-12%
$10 Million in New Contracts since January 1st
NEW YORK--(BUSINESS WIRE)--Zanett, Inc. (NasdaqCM: ZANE), a leading business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) consulting firm serving Fortune 500 corporations, mid-market companies, and highly classified federal agencies involved in Homeland Defense and Homeland Security, today announced confirmation of 2007 fourth quarter revenue guidance in a range of 8-12% above fourth quarter 2006.
Dennis Harkins, Chief Financial Officer of Zanett, said, ?We are completing the auditing process, and we have seen enough that we can confirm our fourth quarter guidance. We expect our net loss to shrink to approximately $0.01, as compared with $0.02 in the same quarter last year, we expect to be cash-flow positive for the fourth quarter, and we anticipate continued positive EBITDA including stock compensation. As will be evidenced in our December 31st filing, our cash on hand exceeds $1 million, as does the availability in our lines of credit. These are some of the positive results of our recent 2007 business realignment, and we expect our current momentum to continue and increase."
Claudio Guazzoni, Chief Executive Officer of Zanett, said, ?We continue to sign projects and clients in healthy numbers at healthy prices, for a January total of $10 million.?
So far, Zanett?s biggest contracts for the first quarter include:
- $1.63 million for implementation services with a global, publicly-held clinical research organization.
- $809,000 in managed services with a leading provider of mobile information solutions for the transportation industry.
- $325,000 for implementation with a national insurance and financial services provider.
These contracts follow a strong December, which included $3.2 million in aggregate BOP and ERP implementation for an international specialty metals manufacturer.
?After the 2007 realignment at Zanett, our sales force is firing on all 12 cylinders, and our delivery people are now the smartest in the business. Our new ?national? business model is showing rapid returns. The fourth quarter was another record for Zanett. We posted strong revenues that were bolstered by good organic growth and continued to see the positive operating leverage that drives us towards profitability,? Guazzoni concluded.
About Zanett, Inc.
Zanett is a leading business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) consulting firm serving Fortune 500 corporations, mid-market companies, and highly classified federal agencies involved in Homeland Defense and Homeland Security. The company operates in two segments, Government Solutions and Commercial Solutions.
Zanett?s Government Solutions segment specializes in providing advanced software and satellite engineering services with domain area expertise in the realm of highly classified geospatial data exploitation and representation as well as IT infrastructure related to Homeland Defense and Homeland Security.
The Commercial Solutions segment provides BPO, ITES, IT and Management Consulting Services, as well as delivers custom business solutions that integrate and implement Oracle's full suite of product offerings - Oracle, JD Edwards, PeopleSoft, Seibel, together with associated Oracle Fusion technologies. A wide range of industry-focused delivery expertise is provided to clients, including Managed Services, Enterprise Applications, Business Intelligence, SOA, and Middleware Technologies. Zanett also provides full infrastructure and application hosting, utilizing local and international resources, remote and onsite DBA support, all on a 24x7 basis.
Zanett currently employs over 234 people nationwide, is headquartered in New York City, and operates out of 9 offices (Atlanta, Boston, Cincinnati, Denver, Indianapolis, Jacksonville, New York City and the Philippines). For more information, please visit http://www.zanett.com.
Certain statements in this news release regarding projected results of operations, or, projected results of financial plans or future strategies and initiatives, including, but not limited to, projections of revenue, projections of profitability, any and all future expectation, and plans for future activities may and should be regarded as ``forward-looking statements'' within the meaning of the Securities Litigation Reform Act. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause Zanett, Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Zanett currently is considering, but in reality may or may not in the future implement any or all of the items and issues listed in any planned budget or strategic initiative, due to, among other things, known and unknown risks, uncertainties and other factors.
Circumstances do change, and if and when the landscape changes, Zanett shall endeavor to remain as flexible as possible, and adjust its strategy accordingly. Zanett, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, change in strategy, or otherwise. The abovementioned listing of risks and uncertainties is not inclusive. For a more detailed discussion of some, but not all, of the risks and uncertainties that may affect Zanett, Inc., see Zanett, Inc.'s filing with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for the fiscal year ended December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended September 30th 3007, June 30th 2007 and March 31st 2007.
Neither Zanett, Inc. nor Zanett Oracle Solutions is a part of, a division of, nor a subsidiary of, nor in any other manner connected with, Oracle Corporation, and no implication is made what-so-ever to suggest as such.
For Further Information, Contact:
RedChip Companies, Inc.
500 Winderley Place, Suite 100, Orlando, FL 32751,
(800) 733-2447,Fax: (407) 644-0758,
info@redchip.com
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