SOURCE: enherent Corporation

November 09, 2007 10:34 ET

enherent Corp. Reports $732,000 Improvement in Net Income for the First 9 Months of 2007 Versus 2006

Roseland, NJ--(Marketwire - November 9, 2007) - enherent Corp. (OTCBB: ENHT) (www.enherentcorp.com), an information technology services provider, today announced its results for the third quarter of 2007. The Company's financial results represented a continued improvement in net income over the prior year period.

Revenues for the three months ended September 30, 2007 decreased $305,000 or 4.1% to $7.1 million compared to $7.4 million for the quarter ended September 30, 2006. The decrease in revenues resulted primarily from a decrease in the sale of equipment and software for the most recent three month period. Revenues for the nine months ended September 30, 2007 increased $1.1 million, or 5.1%, to $23.1 million compared to $22.0 million for the prior year period. The increase in revenues resulted from an increase in the sales of both services and equipment/software for the most recent nine month period.

Net income for the three months ended September 30, 2007 increased $50,000 or 94.3% to $103,000 ($0.00 per share), compared to net income of $53,000 ($0.00 per share) for the quarter ended September 30, 2006. The increase in net income resulted from a reduction in operating expenses during the most recent three month period. Net income for the nine months ended September 30, 2007 increased $732,000 to $294,000, or $0.01 per share, compared to a net loss of ($438,000), or $(0.01) per share, for the prior year period. The increase in net income resulted from a reduction in operating expenses and an increase in gross profit from service revenues during the most recent nine month period.

Pamela Fredette, Chairman, CEO and President, commenting on the financial results for the third quarter of 2007, said, "We are pleased with the continued improvement in profitability for the quarter versus the same period last year. In addition, our earnings per share reached positive territory as we reported $0.01 for the first nine months of 2007 versus a loss of $(0.01) for the same period last year. The Company continues its positive financial trend as we achieved profitability for the sixth consecutive quarter. We continue to focus on improving shareholder value through sustained profitability, exploring growth opportunities and making strategic acquisitions."

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on certain assumptions and analyses made by the Company derived from its experience and perceptions. Actual results and developments may vary materially from those described because they are subject to a number of known and unknown risks and uncertainties. Such risks and uncertainties include, but are not limited to, future demand for the Company's services; general economic, market and business conditions; the Company's ability to increase the amount of services rendered to existing clients and develop new clients and reduce costs of providing services; the Company's ability to recruit and retain IT professionals; and various other factors discussed in the Company's filings with the Securities and Exchange Commission including those set forth under Item 1A of the Company's recent Form 10-K. The Company disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.

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