ORLANDO, Fla., Oct. 2, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has issued a Second Quarter 2007 Research Update on Orsus Xelent Technologies, Inc. (AMEX:ORS). Tony Telan, MBA, RedChip Research Analyst, wrote in the report:
"In a rapidly changing and competitive marketplace, ORS continues to expand through strategic, cooperative relationships and innovation. ORS delivers explosive revenue growth and continues to expand its customer base in traditional and new markets. For the first half of FY 2007, revenues surged 43% compared to the first half in FY 2006. At the beginning of 2007, ORS changed its business model in an effort to avoid becoming a pure cell phone commodities player. Management shifted the focus of operations to mid-level and high-end products, and the result has been greater profitability for the Company. This strategy has allowed ORS to effectively reduce cost of sales and expenses as a percentage of revenues. For Q2 2007, cost of sales as a percentage of revenue declined to 80% from 86% in Q2 2006.
"At a current price of $2.20, ORS trades at only 6.3x projected FY 2007 earnings and at 1.4x projected FY 2007 sales. We believe that ORS will continue to experience rapid and sustained growth with a strong contribution from the sales of specialized application devices. We believe that ORS has significant upside potential and maintain a "Strong Buy" rating. We have established a new 12 month price target of $6.65 based on a multiple of 19x FY 2007 EPS of $0.35."
To receive a complimentary copy of the RedChip Visibility research update for ORS, please visit:
http://www.redchip.com/visibility/about.asp?page=requestORS_Q2_2007
About RedChip Companies, Inc.
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DISCLOSURES
The analysts contributing to this report do not hold any shares of ORS. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that Red Chip Visibility, a division of RedChip Companies Inc, has been paid $34,500 for this report. The Company has also hired RedChip's affiliate company, Aurelius Consulting Group Inc., to provide investor relations services for a fee of $10,000 per month.