I-Sector Rated 'Buy / 4,' Target $8.50 By Investrend Research Analyst Oren Meytes, Who Sees 'Favorable Trends'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (Investrend Research Syndicate)In a Research Update, I-Sector Corp. (AMEX AMEX See: American Stock Exchange : ISR (Interrupt Service Routine) Software routine that is executed in response to an interrupt. ) has rated "Buy / 4" by Investrend Research analyst Oren Meytes, who has set a new 12-month target valuation of $8.50. "I-Sector continues to execute on its business plan," said Meytes. "The company posted its fourth consecutive profitable quarter with net income of $822,000. This figure, however, includes a one-time positive effect of approximately $0.4 million due to incentives received during the quarter, which belong to sales in other quarters. Revenues were $24.3 million, up 60%. "The share price is near its 12 month low - while at the same time the company has executed well over the past year - growing revenues by 50% and turning profitable. "In the 4Q, revenues increased 60% to $24.3 million from $15.2 million and Gross margins more than doubled from $2.9 million to $6.0 million yoy. Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was $945,000 vs. an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $570,000 and net income was $822,000 vs. a loss of $299,000. "The improvement happened all across the board and all three of the Company's subsidiaries recorded strong growth and improving margins in the quarter vs. the year ago figures. "I-Sector is now consistantly profitable in its operations. Notwithstanding acquisitions, working capital needs have eased off with a reduced need for net borrowing, there is no more minority interest in the profits of INX INX Information Exchange INX Increment Index Register INX Ion Exchange INX Internet Exchange INX Increment Register Pair (as of Q2), and the company still has loss carryforwards Loss Carryforward An accounting technique with which a company applies net operating losses of the current year to future year's profits in order to reduce tax liability. Notes: that will eliminate most taxes for the year. "We are projecting net income of $2.0 to $2.5 million for 2005. The company is growing fast and executes well, and we are therefore choosing a multiple of 25 for next year's profits resulting in a 12-month target of $8.50," concluded the analyst. The full report, including important disclosures and disclaimers, available at http://www.investrendresearch.com , and at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company. The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238 I-Sector Corp is enrolled in Investrend Research's pioneering professional research program, which facilitates independent analysts to provide financial coverage for shareholders in companies that otherwise, would have little or no analyst following. Enrollment fees for Institutional coverage are $28,300 and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary Monetary; relating to money; financial; consisting of money or that which can be valued in money. pecuniary adj. relating to money, as in "pecuniary loss. interest, and neither the analyst nor principals of Investrend Research may own or trade in the stocks of companies under coverage. Anyone interested in receiving alerts regarding I-Sector Corp research should email contact@investrend.com with "ISR" in the subject line. |
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