Avatar Systems, Inc. (AVSY.PK) is a leader in accounting and resource management software for the Oil and Gas industry. Avatar was the first application solution provider for the industry and has continued to lead by offering document imaging and workflow solutions that increase productivity and lower operating costs.
Avatar Systems has a growing customer base with its use of Petroware2000™ and Integra Energy™ products for Microsoft Windows and Avatar400™ on the IBM AS400 platforms. The company also provides document imaging, workflow and business process management in addition to disaster recovery and remote backup services. AVSY plans to leverage its technology, business and marketing strengths by acquiring additional businesses with software and IT industry verticals.
Avatar acquired Questa Software Systems, Inc. in 2006. Questa develops ERP Accounting Software for the oil and gas industry. The acquisition has shown to be profitable with an increase in revenues of 36.4% to $1.9 million at the end of the six months ended June 30, 2007.
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Avatar Systems, Inc (AVSY.OB) is a company based in the Dallas / Fort Worth, Texas area that provides enterprise resource solutions for companies engaged in petroleum exploration and production. Avatar has over 300 clients using their patented Petroware software, and another 140 clients using any number of additional patented Avatar products.
Recently, a report published by Beacon Equity Research discussed four major developments within the company. These developments will be discussed below:
1. New software modules will fuel future growth. Avatar Systems plans to release two significant software modules in 2007. These new software modules are expected to catapult Avatars balance sheets to new highs and drive company growth.
2. Partnerships with major players. The Company’s various partnerships with such households companies as Microsoft, HP and IBM, have extended the reach of Avatar Systems products and service offerings.
3. Avatar Systems ranked 26th among the 50 fastest-growing public companies and 180th among the largest 200. Avatar Systems has been ranked the 26th overall company in the Dallas Business Journal for rankings amongst the 50 fastest growing public companies in the Dallas/Fort Worth Metroplex. Furthermore, the Company has also been ranked 180th amongst the 200 largest public companies in the Dallas/Fort Worth area.
4. On August 23, 2007, the Company announced fiscal results for the six month period that ended on June 30, 2007. In these fiscal results, revenues increased over 36.4%, topping 1.9 million dollars during the first six months of 2007, compared to 1.4 million dollars during the first six months of 2006.
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Recently, Beacon Equity Research updated its research on Avatar Systems, Inc. (AVSY.OB) reiterating its “Outperform” rating and raising its Target price to $2.75.
The full report is available at http://www.BeaconEquityResearch.com
In the report, the analyst writes, “Avatar Systems, Inc. provides enterprise resource solution software to the oil and gas industry.
The Company is poised to benefit from increased IT spending by the oil and gas industry and is leveraging its opportunities through acquisitions, new products and services and an expanded customer base.
Avatar produced 60%+ revenue growth and 80%+ earnings growth in 2006 and we expect the Company to report another year of high double-digit growth in 2007.
As a result, we are reiterating our Outperform rating and increasing our price target to $2.75, which is based on a one PEG (Price/Earnings Growth) ratio.”
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