Ness Technologies Inc.NSTC

Morningstar Rating

Stock Research and Analysis

by Swami Shanmugasundaram

Israel-based IT services provider Ness Technologies is known for its strong domain expertise in select niche markets, including managed-services business for independent software vendors, defense contractors, and health-care and life science companies. Read more

Bulls Say

Ness derives more than 85% of its revenue from existing clients, and it continuously focuses on enhancing its client relationship, giving it substantial recurring revenue opportunities.

Ness boasts more than 500 clients--a large stable, given its size. No client accounts for more than 5% of revenue.

Ness benefits from a strong backlog; it ended fiscal 2008 with $736 million in backlog. Read more

Bears Say

Ness generates a significant portion of its revenue from its international operations, making it subject to currency fluctuations between local currencies where it operates and the U.S. dollar, in which results are reported.

Ness is subject to substantial country risk from its operations in Israel; political turmoil, war, or terrorism could adversely affect its operations.

Although Ness has a successful history of acquisitions, there is no guarantee that future acquisitions will be implemented successfully, and integrating new companies can be a challenge. Read more

Strategy

Ness' strategy is to expand its business beyond the Israeli market. The company has had initial success in establishing its presence in the North American and Eastern European markets. It relies on targeted Read more

Management

Ness is led by chairman Aharon Fogel and CEO Sachi Gerlitz. Fogel has been the chairman of the Ness board since 1999. Gerlitz assumed the position of president and CEO in March 2007, when CEO Raviv Zoller resigned, citing family and health-related reasons. Read more

Profile

Ness Technologies, with headquarters in Tel Aviv, is a global IT service provider with a significant presence in Israel, North America, Eastern Europe, and Asia. The company Read more

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