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SmallCaps Online LLC (Formerly SmallCaps Online LLC) Issues Full-Length Report and Reiterates BUY Recommendation on Exigent International
Visit SmallCaps Online’s Web Site at www.SmallCapsOnline.com for Detailed Report
New York, NY, June 7, 1999 — SmallCaps Online LLC (formerly SmallCaps Online LLC) announced today that it has issued a full-length report on Exigent International (Nasdaq: XGNT), commented on recent announcements by the company and has reiterated its BUY recommendation on XGNT stock. The full text of this report can be accessed at SmallCaps Online’s web site, at www.SmallCapsOnline.com.
Jeffrey B. Davis, Director of Research at SmallCaps Online stated, "With the issuance of a full-length basic report, we are pleased to be able to offer investors a comprehensive look at Exigent International as well as a detailed financial model and valuation analysis. We are establishing a 12-month price target range of $10-12 per share based on this analysis."
Excerpts from the report follow:
Exigent International, Inc. ("XGNT") is a holding company focused on the development of innovative software products, specializing in satellite command and control systems. XGNT’s flagship OS/COMETÔ family of software products now commands and controls the two largest satellite constellations in the world: the IRIDIUM constellation of 66 Low Earth Orbit (LEO) satellites (plus 6 on-orbit spares), and the NAVSTAR Global Positioning System (GPS) constellation of 24 satellites, a US Air Force project. The commercial satellite industry is forecasted to grow from an estimated $45 billion in 1998 to approximately $100 billion in five years (governmental business adds to these levels), and industry sources anticipate in excess of 500 satellite missions pending through the year 2003. While satellite command and control systems represent only a small fraction of the total market (approximately $400 million in 1998), growth in the market for commercial-off-the-shelf (COTS) systems in which XGNT specializes should exceed overall market growth rates. XGNT has three operating subsidiaries: Software Technology, Inc. (STI), the main operating business, FotoTag, Inc. and Middleware Solutions, Inc. (two subsidiaries applying core STI technologies to the public transportation and Internet industries).
We believe XGNT is well positioned to grow revenues and earnings from its current levels. XGNT’s expertise in large satellite constellation programs (IRIDIUM and NAVSTAR GPS) positions it well in upcoming constellation projects such as Teledesic, SkyBridge, Orbcomm, Globalstar and Ellipso. In fact, as a result of XGNT’s performance on the IRIDIUM program, XGNT was selected by Motorola as the preferred supplier of command and control software for Celestri (now part of the Teledesic program). XGNT has recently launched new products, the OS/ICC (Open System/Integrated Control Center) and Calypso product line, which will allow XGNT to compete more effectively in bidding situations where integrated hardware and software solutions, and low-end single-node solutions, are necessary. We believe XGNT is trading at a significant discount to its peer group, are initiating coverage with a BUY rating, and recommend purchase by investors tolerant of the risks associated with small-cap equity investments.
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SmallCaps Online LLC is a registered investment advisor focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.
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The information in this press release has been obtained from sources that SmallCaps Online LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC and/or any of its affiliates has performed investment banking, consulting or other services for XGNT and may solicit investment banking, consulting or other business from, any company mentioned in this release. SmallCaps Online LLC or any of its affiliates or persons associated with SmallCaps Online LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company’s reports are in circulation or posted on the SmallCaps Online LLC web site at www.SmallCapsOnline.com. This material, or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright © 1999 by SmallCaps Online LLC. All rights reserved.