Arkados Group OTCBB: AKDS $0.45
Research Note
Industry: Electronics & Engineering
Rating: Speculative Buy (Reiterated)
Price Target: $2.00
By: Robert S. Stoklosa
Arkados Provides Positive Guidance for the February Quarter. Growth Ramp is Underway.
April 13, 2007. Arkados Group (Nasdaq: AKDS) has provided revenue guidance for the February quarter of $60,000. Its growth ramp is well underway as revenues have increased steadily from zero only four quarters ago. An announced backlog of $60,000 implies growth will continue into the current quarter and through the year as the new customers increase and build for the consumer electronics high season in the second half. We reiterate our Speculative Buy rating.
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Amarillo Biosciences Inc. OTCBB: AMAR $0.81
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $1.90
By: Wayne M. Lottinville, CFA
Amarillo Biosciences Featured In Online Interview; Reiterate Speculative Buy
April 5, 2007. Amarillo Biosciences (OTCBB: AMAR) was featured in an online interview, the Company announced. In that interview, CEO Joseph Cummins provided updates on the Company and its progress in developing low-dose oral interferon-alpha for the treatment of various diseases. Cummins also discussed Amarillo Biosciences' current capitalization and upcoming strategic and financial milestones.
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Amarin Corporation plc Nasdaq: AMRN $3.07
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $4.50
By: Stephen L. Handley
Amarin Corporation plc: Encouraging R & D Appointment
April 13, 2007. Amarin Corporation (Nasdaq: AMRN) announced that Declan Doogan, M.D. has been appointed to the newly-created position of President, Research & Development. We are impressed with his background and judge that his acceptance of a position with this small company in effect states his conviction that Amarin's development programs offer great promise. Dr. Doogan joined Pfizer in 1982 and most recently was Senior Vice President and Head of Worldwide Development at Pfizer Global Research & Development,
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Baldwin Technology Company Inc AMEX: BLD $5.00
Research Note
Industry: Industrial & Manufacturing
Rating: Buy (Reiterated)
Price Target: $6.85
By: Wayne M. Lottinville, CFA
Baldwin Acquires Swiss Hildebrand Systeme; Reiterate Buy
April 12, 2007. Baldwin Technology Company, Inc. (Amex: BLD), has acquired the Swiss division of Hildebrand Systeme GmbH, a company known for its high-performance web and sheet cleaning technology. Baldwin has not disclosed the terms of the deal. In March 2005 Baldwin signed an exclusive worldwide marketing and distribution agreement for Hildebrand's web cleaning systems, which account for an estimated two-thirds of Hildebrand's revenues. Baldwin's CFO said that, "Hildebrand has had vigorous growth with good margins in the last two years." Hildebrand's owner and management team will remain with Baldwin after the acquisition.
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Clearant, Inc. OTCBB: CLRI $0.12
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Not Rated (Change)
Price Target: N/A
By: Sally H. Wallick, CFA
Clearant Names Three New Directors.
April 12, 2007. Clearant, Inc. (OTCBB: CLRI) named three new directors, Gaddo L. O. Cardini, Rowland W. Day II, and Michael Elek. All have significant holdings in the Company's shares. Mr. Cardini is a businessman, Mr. Day is a corporate lawyer, and Mr. Elek is a private investor. On April 3, 2007, Clearant reached agreements to issue approximately 89 million shares of common stock at a price of $0.025 per share in private placements with approximately 20 accredited or institutional investors. Also, early in April the Company said that the filing of its 2006 10-K had been delayed due to the Company's limited staff and financial resources, but that it anticipated filing this document no later than the 15th calendar day after the required filing date. If it meets this schedule, the 10-K should be filed some time next week. At that time, we are hopeful that the Company will provide updated information on its direct distribution of CLEARANT PROCESS(R) Sterile Implants and other business strategies. In the meantime, our rating on the shares remains suspended.
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Clearant, Inc. OTCBB: CLRI $0.12
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Not Rated (Change)
Price Target: N/A
By: Sally H. Wallick, CFA
Clearant, Inc. to Issue 89 million Shares, Raise $2.2 million.
April 5, 2007. Clearant (OTCBB: CLRI): On April 3, 2007, Clearant reached agreements to raise $2.2 million by issuing 89 million shares of common stock at a price of $0.025 per share in private placements. Purchasers include the Company's CEO, Jon Garfield. This issuance will more than triple the number of shares outstanding. As discussed in previous comments, we considered it imperative that Clearant raise additional capital since it faced significant financial and operational risk if it wasn't able to do so. Therefore, we view the availability of additional funds as good news for the Company. On the other hand, the latest financial figures we have for Clearant are more than six months old. Also, although the Company has sharply reduced costs, while continuing to market its products and services, we do not know its cash burn rate at present or its immediate cash requirements. Therefore, it is difficult for us to know to what extent this capital infusion alleviates its financial pressures or for how long. As a result, despite our favorable view of the commercial potential for the Company's sterilized implant products, our rating on the shares remains suspended.
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CardioVascular BioTherapeutics Inc OTCBB: CVBT $1.32
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Neutral (Reiterated)
By: Richard W. West, CFA
CardioVascular BioTherapeutics Neutral Rating In Update
April 5, 2007. We initiated research coverage on CardioVascular BioTherapeutics Inc. (OTCBB: CVBT) on September 26, 2006. Since that time, several events have been announced by CardioVascular. We initiated research coverage on Cardio with a Neutral rating, and the lack of progress with Cardio's two trials at the FDA have not caused us to change the rating. Cardio continues to devote all its present efforts to formation, fundraising and product development and approval. Cardio expects operating losses to increase for at least the next several years, due principally to the anticipated expenses associated with the proposed product development, clinical trials and various research and development activities. Cardio's cash burn rate continues to run over $1.4 million per month. Considering the two clinical trials now under way as part of the FDA approval process, Cardio could require approximately $72.0 million in new capital over the next three years to fund these projects. Cardio announced on October 26, 2006, that it intends to apply for listing of its shares on the London Stock Exchange's Alternative Investment Market, or AIM. The process of listing is going forward; Cardio is also planning a stock offering of "Placing" on the AIM, and has filed a preliminary "Pathfinder" document with the London Stock Exchange plc.
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Forgent Networks, Inc. Nasdaq: FORG $1.17
Research Report
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.40
By: Richard W. West, CFA
Forgent Networks Strong Speculative Buy Rating Maintained
April 9, 2007. Since our January 30, 2007, Research Report, Forgent Networks' (Nasdaq: FORG) Intellectual Property program received positive news when Judge Leonard Davis of the US District Court for the Eastern District of Texas, Tyler Division, handed down his ruling from the Markman Hearing for the United States Patent No. 6,285,746 (the '746 Patent). The ruling was interpreted as positive for Forgent. It is apparent that the case is now wending its way toward the trial date of May 14, 2007, although there may be possible settlements before the trial. Forgent reported its second profitable quarter in a row on March 1, 2007. We raised our rating on January 3, 2007, to Speculative Buy from Neutral with a 12-month price target being set at $2.00 per share upon considering many factors. Its common stock has moved up from the December 1, 2006, price of $0.50 per share to its current price of $1.60 per share on heavy volume (3.2 million daily average shares in the month of December). On February 19, 2007, after Judge Leonard's Markman Hearing ruling, we raised our rating to a Strong Speculative Buy and raised our 12-month price target to $2.40 per share. At that time, we again cautioned investors to consider the risks from the unknown results of the '746 Patent litigation.
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Green Plains Renewable Energy NasdaqNM: GPRE $23.11
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $58.00
By: Paul J. Resnik, CFA
Green Plains Renewable Energy Reports February Quarter Results; Derivative Gains and Interest Income Generate Profit; Strong Speculative Buy Reiterated
April 11, 2007. Green Plains Renewable Energy (Nasdaq: GPRE) reported first (February) quarter 2007 results today. The Company posted net income of $777,243. Operating expenses of $853,501 were more than offset by interest income of $456,918 and gains on derivative financial instruments related to corn futures of $1,688,526. Looking forward, the Company states, and we project that Green Plains will incur a significant loss in the May quarter. Assuming that the plant in Shenandoah, Iowa begins operation in July, we believe Green Plains will return to profitability in the August quarter. We continue to expect the Superior, Iowa plant to commence operations in the first fiscal quarter of 2008. Our 2007 and 2008 fiscal year estimates are under review, and we will make adjustments to reflect the profitable February quarter results, the likelihood that most of the Company's interest expense in coming quarters will be capitalized, and the ongoing fluctuations in commodity prices in our next Update report later this month. We continue to rate Green Plains shares a Strong Speculative Buy.
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IntegraMed America Inc NasdaqNM: INMD $15.88
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Buy (Reiterated)
Price Target: $15.00
By: Richard W. West, CFA
IntegraMed America, Inc. Announces Completion Of Baltimore Fertility Center acquistion;Strong Buy Rating Reiterated
April 4, 2007. IntegraMed America, Inc. (NasdaqGM-INMD) announced the signing of a previously announced Partner Service arrangement with the GBMC Fertility Center (the Center) in Baltimore, Maryland, t o provide a full range of business, marketing, and facility services. The GBMC Center is an addition to the eight partners already under agreements with IntegraMed. IntegraMed's stock is now selling at Dutton Associates' 12-month price target, set on March 15, 2006. We reiterate the Strong Buy Rating.
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Index Oil and Gas, Inc. OTCBB: IXOG $1.40
Research Report
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Initial)
Price Target: $1.80
By: Richard R. Wolfe, CFA
Index Oil and Gas Rating Speculative Buy In Initiating Coverage; Management Team and Board Of Directors Have Operated At The Top Levels Of The Exploration Operations Of Major International Oil Companies
April 9, 2007. Index Oil and Gas (OTCBB: IXOG) is a recently established oil and gas exploration and production company with producing properties in Texas, Louisiana, and Kansas. Index has branched out from an initial, successful purchase of low-risk exploration projects in Kansas to a portfolio of higher-potential Gulf Coast properties and is in the process of investigating the purchase of acreage plays along the lines of recent industry activity in unconventional crude oil and natural gas exploitation. Dutton Associates estimates indicate substantially higher oil and gas revenues during the Company's fiscal year ending March 31, 2008, followed by substantial growth of discretionary cash flow in subsequent years. The Company has a successful drilling track record and is guided by a carefully crafted operational strategy with a sophisticated risk-management system. Its management team and board of directors has operated at the top levels of the exploration operations of major international oil companies and can lay claim to a record of success in getting new-business startups off the ground. Our rating is based on our confidence in the Company's business plan and in the very experienced and highly accomplished management team, coupled with our expectation of strong cash-flow growth and our industry outlook calling for favorable crude-oil and natural-gas product markets. We have set a 12-month price target of $1.80 per share.
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Logility Inc. Nasdaq: LGTY $8.73
Research Report
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $13.50
By: David P. Soetebier, CFA
Logility Strong Speculative Buy Rating In Update Coverage; Raising Target Price to $13.50
April 10, 2007. Logility (Nasdaq: LGTY),88% owned by American Software, is a leader in the supply chain management (SCM) software applications business with particular strength in areas dependent on efficient inventory control and distribution. Logility has over 1,100 SCM software clients, compared with an estimated 800 at Manugistics Group (owned by JDA Software) and an estimated 900 at i2 Technologies, its two most important competitors. Logility beat our earnings per share estimate by $0.05 per share for its January 2007 quarter. The positive variable was primarily gross profit margins. Revenues at $11.3 million were $300,000 above our estimate. Gross profits came in at $7.9 million versus our estimate of $7.2 million reflecting a gross profit margin of 69.7% versus our estimate of 66% and gross margins last quarter of 64.5%. Gross profit margins improved in all three-business areas versus three months ago. Because of the stronger quarter versus our estimate, we raised our fiscal 4/2007 EPS estimate to $0.43 (fully diluted) from $0.36 and our fiscal 2008 estimate to $0.54 FD from $0.50. We believe Logility could grow at 25% annually over the intermediate term, which we believe warrants a P/E multiple of 25X earnings. Investors will be focusing on fiscal 2008 earnings estimated at $0.54 giving us a target of $13.50
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MediciNova, Inc. NasdaqGM: MNOV $10.00
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $20.00
By: Wayne M. Lottinville, CFA
MediciNova Elects New Board Chairman: Reiterate Strong Speculative Buy
April 4, 2007. MediciNova elected Jeff Himawan, Ph.D., to serve as chairman of the board. Dr. Himawan replaces Yuichi Iwaki, M.D., Ph.D., who remains president and CEO. The election occurred at the Company's annual shareholder meeting March 30 and was "really a corporate governance issue," according to a Company spokesperson. Corporations are moving away from allowing the same executive hold the top positions, and with the election of Dr. Himawan, MediciNova is also moving in that direction. Dr. Himawan joined MediciNova's board as a director in January 2006. He is a managing director of Essex Woodlands Health Ventures, which he joined in 2001. Essex Woodland Health Ventures and its affiliates own 1,183,870 shares of MediciNova stock, or 10.2% of the its outstanding shares.
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Neurobiological Technologies, Inc. NASDAQ: NTII $2.09
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $8.00
By: Denise T. Resnik, M.S.
Neurobiological Technologies Raises $6.6 Million in Equity; Strong Speculative Buy Reiterated
April 4, 2007. Neurobiological Technologies, Inc. (Nasdaq: NTII) announced on April 2, 2007 that the Company entered into definitive agreements with institutional investors to sell approximately 3 million shares of common stock. At the same time, the Company issued common stock warrants to be purchased at closing equal to the number of shares at an exercise price of $2.40 per share. The gross proceeds from this registered offering totaled $7 million before fees and expenses; net offering proceeds are expected to be approximately $6.6 million. We reiterate our Strong Speculative Buy rating.
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Oragenics Inc AMEX: ONI $1.06
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated/Update)
Price Target: $3.75
By: Wayne M. Lottinville, CFA
Oragenics Rating Maintained At Speculative Buy; Development-stage Products Represent Significant Advances In Current Standards Of Treatment
April 13, 2007. Oragenics (AMEX: ONI) is an early-stage biopharmaceutical company with several promising products in its product pipeline which represent significant advances in current standards of treatment. If successfully commercialized, several could result in annual sales in excess of $1 billion. Successful progress in any one of the Company's development programs could add $100 million or more to Oragenics' market capitalization. The most significant impediment to Oragenics' progress is financial constraints. The conclusions of this report assume that Oragenics will obtain the financial backing it needs in the near future. We also assume that Oragenics will achieve its clinical goals within our target time frame. Based on these assumptions, we reiterate our Speculative Buy rating on Oragenics with a 11-month price target of $3.75 per share, which is based on the potential increase in market capitalization cited above. Although our target price suggests a higher rating, the Company first needs to secure better financial footing.
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O2Diesel Corp AMEX: OTD $0.70
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $2.25
By: Sally H. Wallick, CFA
O2Diesel Corporation Begins Field Tests of New Fuel.
April 5, 2007. O2Diesel Corporation (AMEX: OTD) began field testing a new renewable fuel, O2Biodiesel, that is being developed for the U.S. Department of Defense (DoD). We believe that these tests are one more indicator of the Company's steady progress on a number of fronts toward developing significant markets for its alternative fuels. Development of O2Biodiesel has been supported by the recently announced $1 million of new federal government funding, which supplements earlier appropriations. We believe that the potential for the eventual wide scale deployment of O2Biodiesel for use by the DoD is enhanced by: (1) successful emissions testing of the fuel in Texas; (2) the ability for its rapid deployment with little or no change in the existing fueling infrastructure; and (3) qualification of the fuel for "EPAct" credits under the federal law that applies to federal, state and other regulated fleets. We rate O2Diesel common Speculative Buy.
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PacificHealth Laboratories Inc. OTCBB: PHLI $1.85
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $2.00
By: Jonathan H. Ziegler, CFA
PacificHealth Laboratories: Update on Cadbury Schweppes Marketing Campaign For ACCELERADE RTD. Putatively Will Be Largest Product launch in the Company's Beverage History With Budget of $50 million Scheduled to Commence May 28th.
April 11, 2007. Pacific Health Laboratories: Today's issue of BrandWeek has a story detailing the launch of a major marketing campagin commencing May 28th for ACCELERADE RTD which it had licensed early last year from PHLI.
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Panhandle Oil and Gas Inc. AMEX: PHX $20.01
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Buy (Reiterated/Update)
Price Target: $30.00
By: Les W. Childress
Panhandle Oil and Gas Announces Significant Increase in Oil and Gas Reserve Estimates from the Woodford Play.
April 13, 2007. Panhandle Oil and Gas Announced Significant Increase In Oil And Gas Reserve Estimates From The Woodford Play
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Patriot Scientific Corp. OTCBB: PTSC $0.59
Research Note
Industry: Electronics & Engineering
Rating: Neutral (Change)
By: Richard W. West, CFA
Patriot Scientific Announces License for Japanese-Based Manufacturer of Consumer Electronics;
Neutral Rating Reiterated
April 12, 2007. Patriot Scientific Corporation (OTCBB:PTSC) announced that Sharp Corporation purchased a license that gives it the right to use technologies protected by the Moore Microprocessor Patent™ Portfolio (MMP Portfolio). Sharp Corporation is a major producer of LCD TVs, color TVs, TV/VCR combos, LCD projectors, and other electronic products. We reiterate our Neutral rating.
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Raser Technologies Inc. NYSE: RZ $8.21
Research Note
Industry: Industrial & Manufacturing
Rating: Not Rated (Reiterated)
Price Target: N/A
By: Gerald A. Rothstein, CFA
Raser Technologies Raises $12.5 Million In Equity Private Placement
April 5, 2007. Raser Technologies (NYSE: RZ) announced that it had raised $12.5 million in an equity private placement. This eliminates any immediate cash crunch and is a very positive step. If Raser is successful in negotiating near term monetization of some of its geothermal reserves, it may be able to avoid additional equity raises.
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SES Solar Inc. OTCBB: SESI $0.73
Research Note
Industry: Industrial & Manufacturing
Rating: Speculative Buy (Reiterated)
Price Target: $2.10
By: Sally H. Wallick, CFA
SES Solar Inc. 10-K Filing Likely By Mid April; Progress On New Plant Updated.
April 5, 2007. SES Solar Inc. (OTCBB: SESI) is a Swiss-based developer of cost-effective, high productivity solar panels and solar roof tiles. The Company plans to consolidate production in a new plant in Geneva Canton, Switzerland early in 2008. We expect the SES to file its 2006 10-K by the middle of April. However, during the period when management's focus is on building the new plant and preparing to bring it on stream, we expect revenue to be modest and do not look for operating results to be indicative of the Company's long-term potential. To date, SES has achieved important milestones related to the transition to the new plant, including obtaining financing, placing orders for new production equipment and preparing to start construction in April. Management expects to complete the plant by the end of 2007 and to initiate production in the first quarter of 2008. Since 2007 will be a transition year for SES, in the near-term, we believe that the Company's share price may be driven in part by the completion of Company-specific milestones. In addition, the shares' performance could be affected by external events that influence investor perceptions of the solar industry, such as changes in energy prices and government incentives. We rate SES Solar Inc. shares Speculative Buy.
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Sunwin International Neutraceuticals, Inc. OTCBB: SUWN $0.52
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $1.10
By: Stanley Ng
Sunwin Stevia Receives Multiple Purchase Orders for OnlySweet TM;Reiterate Speculative Buy Rating
April 11, 2007. Sunwin Stevia International Announced on April 10 That It Will Start Selling OnlySweet (TM) to US Consumers Through Multiple Grocery Chains in the US
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Seawright Holdings, Inc. OTCBB: SWRI $1.36
Research Note
Industry: Food Manufacturing & Products
Rating: Speculative Buy (Reiterated)
Price Target: $1.00
By: Jonathan H. Ziegler, CFA
Seawright Springs To Begin The Process To Distribute Its Spring Water In All 50 states
April 6, 2007. Seawright Holdings, Inc (OTCBB:SWRI) announced that is beginning the process of compliance to distirbute its water througout the U.S. expanding dramatically from its base in the mid-Atlantic states
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Top Image Systems Ltd Nasdaq: TISA $3.76
Research Note
Industry: Software
Rating: Buy (Reiterated)
Price Target: $5.00
By: Rafael K. Kapelinski
Top Image Systems: Acquires CPL, Adjusting Estimates
April 12, 2007. We adjust our estimates following TISA's (Nasdaq: TISA) acquisition of CPL, a UK-based content capture integration specialist. Our new pro-forma 2007E revenue and EPS estimates are USD 27.2 million and USD 0.07 versus USD 23.2 million and USD 0.14 previously. Our new forecast assumes incremental 2007E revenue contribution of USD 4 million and slightly lower margins as PLC, according to the Company, just turned profitable on the operating level in 1Q 2007. Given the fact that CPL's gross margins are higher than TISA's, the prospects for returning to TISA's historic operating margin levels are good, but the timing is still uncertain. We view our EPS estimates as a worst-case scenario and will readjust them as more consolidation details continue to emerge.
Although we lower the 2007E EPS estimate, we believe that the acquisition is a positive as it will potentially strengthen the Company's presence in the UK, and in the US and South Africa in the longer term as well. The acquisition risk is significant, but we believe that the management has dedicated significant resources to making sure that the acquisition is a success. We expect the Company to execute additional acquisitions in the near future.
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Telanetix, Inc. OTCBB: TNXI $6.25
Research Report
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated)
Price Target: $8.00
By: Joe Noel
Telanetix Strong Speculative Buy Rating Maintained In Update; Neither Polycom/Tandberg Nor Cisco Systems Is Able To Compete With The Extremely High Quality Of Video And Audio Produced By The Telanetix Product Line
April 10, 2007. As a result of recent acquisitions, improved competitiveness within the market, and what appears to be a very robust pipeline in front of Telanetix (OTCBB: TNXI), we are raising our estimates. Our top-line revenue number for 2007 moves from $8.8 million to $13.2 million and our earnings-per-share estimate moves from $0.16 to $0.18. In our opinion, Telanetix's conferencing products are of very high quality and are likely to be considered by many to be a generation ahead of competitive products. Simply put, the Company offers the best conferencing experience we have seen. We believe the quality of this product is comparable to the quality of the recently announced Cisco Systems product and to HP's high-end conferencing system; however, corporations are able to purchase the Telanetix product at one-fifth to one-third of the price charged by Cisco or HP. This benefit of comparable quality at dramatically lower price points was recently highlighted in one of the major networking and telecommunications industry papers. We strongly believe one of the major players in this market, Cisco Systems, Polycom or Hewlett-Packard, will likely make a move to acquire the Company. We believe neither Polycom nor Cisco Systems is able to compete with the extremely high quality of video and audio produced by the Telanetix product line.
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Telanetix, Inc. OTCBB: TNXI $6.25
Research Note
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated)
Price Target: $8.00
By: Joe Noel
Correction: Telanetix Makes Important Acquisition - Raising Our Estimates and Price Target to $8.00
April 5, 2007. On April 4 Telanetix (OTCBB: TNXI) announced it had acquired two leading audio and visual systems integrators: Union Labor Force One (ULF) and Audio Visual Systems Integration (AVS). Both of these firms are involved in the custom engineering of audio/visual room systems and are involved in integration of services for Telanetix's current hardware and service offerings. These two firms have been very active resellers of Telanetix products for the past few years.
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XAAR Plc LSE: XAR $4.77
Research Report
Industry: Computers, Technology & Internet
Rating: Buy (Reiterated)
Price Target: $6.15
By: Rafael K. Kapelinski
Xaar plc Buy Rating Maintained In Update Coverage; 2007 Should See First Revenues From Gen 2 and Gen 3 Printing Platforms
April 13, 2007. We reiterate our Buy rating on Xaar Plc (LSE: XAR), as we continue to believe that the Company should increasingly emerge as one of the beneficiaries of the ongoing push towards digital inkjet by large imaging OEMs such as Kodak, Fuji, and Agfa. At the same time, our industry sources indicate that sales of wide format digital printers have slowed down somewhat and price reductions by the OEMs have been commonplace. EFI has not posted its 4Q 2006 results, so it is difficult to verify these signals even in a cursory fashion, but we believe the increasing market saturation is beginning to dampen sales. As a result, we do believe that Xaar's mid-term outlook should be defined by the relative success of the Gen 2 and Gen 3 printing platforms on one hand, and negotiations with industry takeover suitors on the other. Xaar's 2H 2006 results were slightly below estimates. Revenues came in at £ 19.9, down 10.7% over 1H 2006, when the Company experienced trading problems in China. Total annual 2006 revenue figure was £ 42.21 million, down 1.3% over 2005. Our new forecast calls for revenues of £45.2 million (+6.9% year-on-year) and EPS of £0.077 versus £50.95 million and £0.011 previously, respectively. Most importantly, in 2007E the Company should see first revenues from Gen 2 and Gen 3 printing platforms.
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Information, opinions or recommendations contained in this research report or research note are submitted solely for advisory and information purposes. The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This research report or note is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed. Neither the Firm, its principals, nor the assigned analysts own or trade shares of any company covered. The Firm does not accept any equity compensation. Anyone may enroll a company for research coverage, which currently costs US $39,500 prepaid for one-year. Reports are performed on behalf of the public, and are not a service to any company. The analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests and insure independence. Please read full disclosure and other reports and notes on the Company at www.DuttonAssociates.com.
The views expressed in this research report or note accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by Dutton Associates is in any way related to the specific recommendations or views contained in this research report or note.
Dutton Associates. John M. Dutton, President, 4989 Golden Foothill Parkway, Suite 4, El Dorado Hills, CA 95762 Phone (916) 941-8119, Fax (916) 941-8093
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