ORLANDO, Fla., Sept. 17, 2008 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc. has issued a first quarter 2009 research update for EnterConnect Inc. (OTCBB:ECNI), a leading provider of Enterprise-Proven On-Demand Business Portals.
Ajay Mohan, MFM, RedChip Research Analyst, reported:
"During 1QFY09, ECNI built a sales pipeline to the tune of $10 million, which, in our opinion, is likely to swell considerably over the next few quarters. However, operating expenses continue to outstrip the revenues generated and we believe the Company is still a few quarters away from reaching its breakeven.
"ECNI has taken a number of corrective steps since 4QFY08, and we believe the sales pipeline built during the last quarter of FY08 and 1QFY09 will be converted into revenue going forward, and full-year FY09 revenue is likely to increase sharply," Mohan continued.
"Taking into consideration the attractiveness of its suite of products and its aggressive M&A strategy, ECNI presents investors with a high risk tolerance the prospect of high returns with an opportunity to invest in a niche software segment. We maintain our 'Speculative Buy' recommendation on ECNI but have revised our 12-month target price to $1.34 in view of our revised revenue and earnings estimates for FY09 and FY10, subsequent to our discussions with ECNI management," Mohan concluded.
To receive a complimentary copy of the RedChip Visibility Research Report for ECNI, visit: http://www.redchip.com/visibility/about.asp?page=vreport&reportid=133&from=09172008pr.
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Disclosure
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. EnterConnect Inc. paid RedChip Visibility, a division of RedChip Companies, Inc., $36,000 for RedChip Visibility Program services, which included the preparation of this equity research report. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. EnterConnect Inc. agreed to pay RedChip Companies, Inc., a fee of $10,000 in cash per month and 130,000 shares of common stock under Rule 144 for twelve (12) months of these services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. To the fullest extent permissible under applicable law, RedChip Companies will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information.