ORLANDO, Fla., July 22, 2008 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on Bridgeline Software, Inc. (Nasdaq:BLSW), a developer of web applications and web application management software.
Harry Russell, MBA, RedChip Research Analyst, reported:
"Bridgeline Software has a robust product suite, a large diversified customer base, and revenues which are growing very quickly both organically and through strategically selected acquisitions. The Company has many viable acquisition targets and a success of executing them in an accretive fashion. The Company thus far has been very successful at executing on this strategy and seems quite competent at incorporating acquired assets in with its existing revenue base."
He continued: "As the Company continues to expand its regional base as well as its purchasing currency, more companies will want to join forces as their own growth becomes challenged. This will allow BLSW's strategy to gain momentum which should bring meaningful growth and economies of scale. There is large leverage going forward in this model that should drive both earnings and EBITDA expansion. The Company's strategy is sound and management seems very capable of executing.
Given the prospects for the Company's business model and the history of successful acquisitions and candidates, coupled with the value proposition for customers and BLSW's vast and growing customer base, we feel that the Company can execute. We think that the business model can allow for substantial growth rates and, although many of these are purchased, they become accretive in short order."
"We are initiating research coverage of BLSW with a 'Speculative Buy' recommendation and a 12-month price target of $6.50," Russell concluded.
To receive a complimentary copy of the RedChip Visibility Initial Research Report for BLSW, please visit: http://www.redchip.com/visibility/about.asp?page=vreport&reportid=124&from=07222008pr
About RedChip Companies, Inc.
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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. Any investor should determine whether a particular security is suitable based on the investor's objectives, other securities holdings, financial situation needs, and tax status. Bridgeline Software, 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. Bridgeline Software, Inc. agreed to pay RedChip Companies, Inc. a fee of $24,000 in cash and for 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, Inc. will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information.