TransNet Reports Profits in Fiscal 2008 First Quarter

BRANCHBURG, N.J., Nov. 14 /PRNewswire-FirstCall/ -- TransNet Corporation (OTC Bulletin Board: TRNT), a leading IPC and IT sales and service provider, today reported revenue of $9,006,996 and earnings of $31,894 , or $0.01 per share, for the...


BRANCHBURG, N.J., Nov. 14 /PRNewswire-FirstCall/ -- TransNet Corporation (OTC Bulletin Board: TRNT), a leading IPC and IT sales and service provider, today reported revenue of $9,006,996 and earnings of $31,894, or $0.01 per share, for the first quarter of fiscal 2008, ended September 30, 2007 . This compares to $8,371,322 in revenue and $7,730, or $0.00 per share, in earnings for the same period last year.

Steven J. Wilk, President said, "During the quarter ended September 30, 2007 , the demand for TransNet's physical security and Internet Protocol ('IP') Telephony solutions increased, leading to a 7.6% increase in overall revenues over fiscal 2007. Of greater significance was our increase in net income over the comparative quarter.

"The demand for physical security solutions and services continued to increase as many schools, institutions of higher learning, local municipalities, and corporations have begun to recognize the significant role of video surveillance and prioritize it in overall security for students, faculty, citizens, and employees. The physical security products provided by TransNet have their foundation in the same IP-based backbone as the IP Telephony products in which we have an expertise and, as a result, we feel we are well qualified and positioned to capitalize on future growth opportunities. We believe the demand will expand and strengthen this important growth area of our business. In fact, IP-based products and services represented 40% of our overall revenues during the quarter ended September 30, 2007 . For the prior year's quarter, IP-based products and services represented 23% of our overall revenues. We believe this trend will continue as more end-users rely on IP-based products for unified communication services.

"During the quarter, the number of outstanding proposals to state and local agencies in New Jersey, New York, and Pennsylvania for unified communications products and services increased. We have partnered with a number of security-based OEM's and believe we will be successful in many of these proposals. We anticipate significant growth with these agencies in calendar 2008. During the last few quarters, we increased our sales staff to better position us to take advantage of the great opportunities in the expanding marketplace. We look forward to the results of this expansion.

"Service profit margins increased to 32% for the fiscal 2008 quarter, as compared to 28% for the prior year's quarter. Included in these results were our new technical staffing operations. Since we introduced these offerings, our services have been in demand as many commercial clients turned to TransNet for their IT staffing requirements. We anticipate further growth in this area of our business. We continued be effected by the industry-wide decline in "legacy" based help-desk business, as many larger companies have elected to outsource their support needs to locations overseas to cut costs.

"We believe the opportunities from physical security solutions, IP telephony and staffing will provide us with future opportunities for growth, especially in the medium business, K-12 education, institutions of higher learning, and state and local municipality market places."

About TransNet

TransNet Corporation is a leading unified communications and IT sales and support provider for corporate, educational, and governmental clients. TransNet provides sophisticated solutions, including system design and integration, help-desk support services, staffing services, and end-user training. Its clients include Fortune 100 organizations, primarily in the pharmaceutical, oil and gas, finance and communications industries, as well as educational and governmental institutions. TransNet serves it clients from its Branchburg, New Jersey headquarters, and its offices in eastern Pennsylvania.

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