SOURCE: enherent Corporation

November 13, 2006 16:30 ET

enherent Corp. Reports Third Quarter Results

NEW YORK, NY -- (MARKET WIRE) -- November 13, 2006 -- enherent Corp. (OTCBB: ENHT) (www.enherent.com) (the "Company") today reported revenues and earnings for the third quarter ended September 30, 2006.

Revenues for the three months ended September 30, 2006 decreased $213,000 or 2.8% to $7.41 million compared to $7.63 million for the quarter ended September 30, 2005. Revenues for the nine months ended September 30, 2006 increased $3.1 million, or 16.4%, to $22.0 million compared to $18.9 million for the prior year period. The increase during the nine-month period was attributable primarily to the additional revenues generated from the merger of Dynax Solutions, Inc. into the Company on April 1, 2005.

Net income for the three months ended September 30, 2006 was approximately $53,000, or $(0.00) per share, compared to net income of approximately $81,000, or $(0.00) per share, for the third quarter of 2005. The change in net income was due primarily to higher interest charges and lower operating income (mainly due to stock based compensation expenses, partially offset by lower depreciation and amortization expenses) in the three months ended September 30, 2006 as compared to the three months ended September 30, 2005.

Net loss for the nine months ended September 30, 2006 was approximately $438,000, or $(0.01) per share, compared to approximately $790,000, or $(0.02) per share, for the prior year period. The reduction in net loss was due primarily to non-recurring expenses incurred during the nine months ended September 30, 2005 pertaining to the Merger, partially offset by higher interest charges during the nine months ended September 30, 2006 and stock based compensation expenses incurred as a result of the adoption of SFAS No. 123(R) on January 1, 2006.

Pamela Fredette, Chairman, CEO and President, commenting on the third quarter said, "We maintained profitability for the quarter. We will continue to execute on our 2006 financial and operational plan to achieve our goals of improving profitability and increasing shareholder value."

About enherent

enherent Corp. (OTCBB: ENHT) is an information technology professional services firm providing its clients with (a) consultative and technology staffing resources; and (b) teams of technical consultants trained in the delivery of solutions related to systems integration, network and security, and application services. enherent also provides solutions outsourcing involving software development. enherent customers can be found in many different industry segments, from the Fortune 500 to middle-market enterprises. The company, headquartered in New York City, operates throughout the northeastern United States and has sales locations in Connecticut, New York City, and Long Island, N.Y. For more information visit www.enherent.com.

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.

Contact Information