NEW YORK, June 6, 2011 (GLOBE NEWSWIRE) -- GBS Enterprises, Inc. (OTCBB:GBSX), announced today that Gar Wood Securities, a full service institutional broker–dealer located in Chicago, Il, has initiated coverage and issued its Insight Equity Research Report on the Company with a Buy rating and $9 per share target price.
Gar Wood recently raised $7.55MM for GBS with warrant coverage that will result in an additional $9MM funding to the Company.
Some excerpts from the Gar Wood research report are as follows:
- As the largest provider of products and services to IBM's Lotus market, GBS has a long history of working with IBM. The Company is currently working with IBM to market its GROUP Live Cloud Platform and Notes Transformer.
- The Cloud Computing market was estimated to be $16.5 billion in 2009 and is predicted to increase to $55.5 billion in 2014. GBS competes in this market through its Cloud Automation Platform, which can be customized for a wide range of customers, and its software solutions which are now available in a SaaS format.
- Due to cost savings and efficiencies, it is estimated that 40% of all business applications will be delivered via the cloud by 2014. We believe GBS' Transformer software provides the only timely, cost effective method to move Lotus Notes applications to the Cloud, without having to rewrite entire applications or move away from Notes.
- We estimate the total market potential for the Transformer to be roughly $18.0 billion, of which we believe GBS's realizable market could be roughly $5.5 billion. The bulk of this potential revenue would have little cost associated, as it incurs little cost on IBM sales and primarily just programmer cost on applications it transforms.
- The Company's Transformer was awarded the CTO Award at Lotusphere in 2011, while its Cloud Platform won the IBM Bestseller Award at Lotusphere in 2011 after winning the CTO Award at the 2010 Lotusphere.
- Management has a track record of completing M&A deals that add new customers and/or technologies at low valuations. It is also working to expand its distribution channels, similar to its recent agreement with Alliance Technology Group to market to the government sector.
About GBS Enterprises Incorporated
GBS Enterprises Incorporated (OTCBB:GBSX) is the 50.1% parent company of Group Business Software AG which is focused on Cloud Computing solutions primarily for the IBM Lotus market. GBS has more than 4,000 customers worldwide with more than 4 million users of their products and services; and has offices in New York, Boston, Atlanta, Toronto, London, Manchester, Copenhagen, and throughout Germany. Its European headquarters is in Frankfurt, Germany and North American headquarters is located in New York City. For more information, please visit www.gbs.com.
Caution Concerning Forward-Looking Statements
This release contains statements, which may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or expectations of the Company. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that results may differ materially from such statements.
CONTACT: GROUP Business Software AG: Marketing and Communications Contact: Michael Baum, Corporate Communications firstname.lastname@example.org GBS Enterprises Incorporated: Investor Relations Contact: Gary MacDonald, EVP and Chief Corporate Development Officer email@example.com