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Zanett Volume Spikes on Contract Bookings

Zanett shares jumped 640% on an announcement of $12 million in new contracts in 2010



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shares rocketed 640% higher Thursday on a spike in trading volume after the customized IT solutions company said it booked $12 million in new contracts during the first two months of 2010.

Zanett said Thursday it has set an in-house corporate record for contracts closed in January and February, with over $12 million dollars in new business closed. The contracts consisted of 42 different customers, with the largest worth $4 million, Zanett said.

The contracts announcement comes one day after Zanett said it expects to receive a delisting determination letter from the


by March 15, due to Zanett's failure to regain compliance with the exchange's minimum bid price requirement.

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Zanett said it plans to file an appeal and will "vehemently fight to maintain our current Nasdaq listing." Zanett said it expects to be issued a written decision from a hearing panel 60 days after March 15. Until then, no delisting action will be taken before the hearing process concludes, the company said.

Shares of Zanett were surging by $1.99, or 640%, to $2.30, establishing a new 52-week high. More than 6.01 million shares changed hands by 2:30 p.m. EST Thursday, compared to the stock's 50-day average daily volume of only 20,000 shares.

Zanett has a 3.3 million-share float with 19,000 shares short as of Feb. 12, according to Yahoo! Finance. Insiders hold 58% of the company's shares, with another 1.3% owned by institutions.

-- Written by Robert Holmes in Boston


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