| GOOD MANAGEMENT - THE KEY TO SUCCESS
Wall Street has long considered it an axiom that good management, more than any other factor, holds the key to corporate success, or put another way, winners breed winners.
In this issue of Comments, we'd like to introduce our shareholders to the management of Zanett Inc., those responsible for the company's continued pattern of growth and earnings. In future issues, we will attempt to keep you abreast of all the latest major developments, as well as other matters of interest.
It's not often that a company can boast of a President who has been written up as one of the "Wizards of Wall Street." Claudio Guazzoni's depth of experience includes having worked for Salomon Brothers in their mergers and acquisitions department, and as a fund manager for investor portfolios aggregating in excess of $1.4 billion. He later became manager of the $350 million Zanett Lombardier Fund, which specializes in IT companies. It was there that Jack Schwager wrote in his book "Stock Market Wizards," the fund "has yet to register a losing month," and "returns have been averaging 37% annualized over 5 years." The key to this success? Search for undervalued assets. This was also Claudio's philosophy earlier, when in 1993 he co-founded Zanett Securities Corporation, which invests in burgeoning new technologies. The result was a succession of successful IPOs for a number of young tech companies, such as YouthStream Media, Inc., Robotic Vision Systems, Inc., SmartServ Online and FiberNet Telecom Group. His investment philosophy can best be summarized in his own words, "We try to eliminate the downside." His modus operandi is to first find a business sector that is vital to the nation's economy, growing at an accelerated rate and showing potential for an explosive upside. This concept resulted in his forming of Zanett Inc. in 2000 to concentrate on the IT services area.. He next seeks out companies within that sector that have carved themselves out a secure niche, have excellent long-term prospects, and a professional and superb management that wishes to grow along with the Company. It's a formula Claudio feels confident will result in significant gains, over the next several years, for the stockholders of Zanett.
The CEO of Zanett Inc. is Dave McCarthy, who previously had been
a derivatives trader and then a risk arbitrage professional at European
American Corporation. He CO-founded Zanett Securities, a private
investment company, with Claudio in 1993, where he helped coordinate
over $200 million in private investments. Since 2000, his principle
activity has been in the daily running of Zanett Inc.
Jack Rapport joined Zanett Inc. as its CFO in April 2001, bringing with him an extensive background in finance and technology, starting with executive and managerial positions at Bank of America, Manufacturers Hanover Trust, Blue Cross & Blue Shield and Automated Language Processing Systems. He next worked with The Pharmacy Fund, where as Exec V-P & CFO, he arranged capital markets transactions in excess of $400 million. Just before joining Zanett, he was VP of Corporate Development for Coriva, the IT consulting subsidiary of Adept, Inc.
Pierre-George Roy has served as Chief Legal Officer of the company
since September 2001. Previously, he had been practice leader in
telecom corporate finance as well as mergers & acquisitions with
Clifford Chance, the world's largest law firm, managing transactions
worth over $20 billion in combined value. He then served as V-President
of Corporate Development, and General Counsel for Openstream, Inc.,
a software developer of wireless applications.
Kenneth De Robertis, Controller, previously had been Director of Corporate Reporting for Monster Worldwide, responsible for the purchase accounting on 35 deals with values up to $108mm. Prior to that, he had been North American Controller for the Man Group, USA, an agricultural/financial services/asset management company.
Zanett Inc is a holding company, which presently consists of five corporations operating under the unique concept of a Commonwealth of interests. These are Back Bay Technologies, Brandywine Computer Group, Paragon Dynamics, Delta Communications, and the recently added INRANGE Global Consulting.
And while each of the Members of the Commonwealth have their own extremely professional, capable and successful management teams, the overall operations of Zanett, as well as future company acquisitions, are the responsibility of the executives described above.
In future issues of the Comments, you will be introduced to the highly competent and skilled professionals, who constitute the management of each of these five companies, in order to give you a better appreciation of why we believe the Members of the Commonwealth form one of the most exciting concepts for the further development of the services area of Information Technology.
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