Zanett, Inc. (NasdaqCM: ZANE), a leading consulting firm specializing in business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) serving Fortune 500 corporations and mid-market companies, today announced it will execute a 1-for-4 reverse stock split effective pre-market Monday, June 30, 2008. Under Nasdaq rules, in order to signal that the reverse split has occurred, for the next 20 trading days Zanett’s ticker symbol will be have the letter “D” temporarily annexed to the end of the regular ticker. As of pre-market Monday and for the next 20 trading days, the temporary ticker for the common stock will be “ZANED,” and the per share price will reflect the 1-for-4 reverse split.
Dennis Harkins, Chief Financial Officer of Zanett, said, “Zanett has undertaken this reverse stock split to help us comply with the Nasdaq Capital Market's minimum bid price requirement for continued listing set forth in Marketplace Rule 4310(c)(4). We value our listing on the Nasdaq Capital Markets and are optimistic that this reverse split, combined with our improved financial results, will both ensure future compliance with the minimum bid price requirement and boost shareholder value in the long term.”
On May 29, 2008, Zanett, Inc. received a letter from the Nasdaq Stock Market stating that the Nasdaq Hearings Panel had granted the Company's request to remain listed on Nasdaq, subject to the condition that on or before July 23, 2008, the Company must have received a closing bid price of $1.00 or more for its common stock for a minimum of ten consecutive trading days. In that letter, the Panel noted that Zanett’s stock price had suffered over the past year due to its financial results and general market conditions.
Mr. Harkins continued, “I would like to point out that in Q1 2008 Zanett revenues were up 24% over first quarter 2007, and that 2008 Q1 EPS were positive. Most recently, we have signed over 70 new contracts during April and May worth a combined total of almost $7.4 million.”
”Also, we have issued guidance for Q2 2008 revenue growth rate of 10-12% above Q2 2007. We have also recently confirmed our previously announced 2008 annual growth rate of 17-18% higher than 2007. Moreover, we are achieving these results despite overall sluggish economic conditions.”
As a result of the 1-for-4 reverse split, the number of outstanding common shares of stock will decline from 30,111,773 (reported in Zanett’s 10-Q for the quarter ended March 31, 2008) to approximately 7,527,943. Shareholders approved this reverse stock split at the Company's annual meeting of shareholders held on May 20, 2008. Since then, authorities in Delaware, where Zanett is incorporated, and the NASD have reviewed and approved the split.
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 has historically operated in two segments, Government Solutions and Commercial Solutions. With the sale of PDI, Zanett will focus exclusively on its Commercial Solutions business.
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 200 people nationwide, is headquartered in New York City, and operates out of 8 offices (Atlanta, Boston, Cincinnati, Detroit, 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 aforementioned 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 filings with the Securities and Exchange Commission.
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 whatsoever to suggest as such.
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LeVay & Rose, Inc.
Michael J. Porter, 212-564-4700
President
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Jeffrey
Myhre, 212-564-4700
VP - Editorial
