Zanett closes $20.6M in new contracts for second-quarter 2010

Jul 8 2010

Zanett, Inc. (Nasdaq: ZANE) announced today that Q-2 2010 was a record quarter for the firm with respect to the rate of contracts closed in a quarterly period.  Between the period of April 1, 2010 and June 30, 2010, over $20.6 million in new business has been closed. This amount is comprised of 50 different customers, with the largest customer being responsible for a $7.5 million mandate previously announced.  Year-to-Date, over $37.7 million of new business has been signed.  The bulk of this revenue is expected to be realized within the next 12 months.

RECORD QUARTER

Dennis Harkins, President and CFO of Zanett, said, "In its 10 years of existence, Zanett has never been better... Q2 is another record quarter for Zanett, and I am very excited about our prospects. The investment and effort we undertook in 2009 are finally beginning to paying off handsomely in 2010, and will continue well beyond. This is our 3rd consecutive record quarter, and the future of Zanett has never looked better. We like to balance revenue growth with investment spending, and we will continue to do so, to fuel the future."

HEALTHCARE FOCUS THRIVING

Mr. Harkins further clarified, "Healthcare was by far the biggest segment of contracts signed for the past six months.  Throughout the US, corporations are currently hesitant about hiring individuals due to unknown and unfunded mandates from Washington DC, so they are spending their money on increased capital expenditures.  Oracle ERP and other IT spending are a natural beneficiary of a reduction in labor force."

$150 MILLION SALES PIPELINE (GROSS)

Mr. Harkins continued, "Zanett has 20 great people in our national salesforce, and working in conjunction with the Oracle reps, we are winning deals away from the competition… left, right, and center.  Our delivery team is doing a fantastic job because it is made up of only the top people in our industry.  I am very pleased with the activity of the past six months and continue to be impressed with the quality of the deals in our Pipeline.  The Revenue/Sales Pipeline is currently over $150 million in size (gross), and this Pipeline will fuel future growth throughout 2011 and into 2012."