EL DORADO HILLS, Calif., Apr 09, 2007 (BUSINESS WIRE) -- Dutton Associates continues its coverage of Forgent Networks, Inc. (Nasdaq:FORG), maintaining its Strong Speculative Buy rating and $2.40 price target. The 14-page report by Dutton senior analyst Richard W. West, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
Since our January 30, 2007, Research Report, Forgent Networks' Intellectual Property program received positive news when Judge Leonard Davis of the US District Court for the Eastern District of Texas, Tyler Division, handed down his ruling from the Markman Hearing for the United States Patent No. 6,285,746 (the '746 Patent). The ruling was interpreted as positive for Forgent. It is apparent that the case is now wending its way toward the trial date of May 14, 2007, although there may be possible settlements before the trial. Forgent reported its second profitable quarter in a row on March 1, 2007. We raised our rating on January 3, 2007, to Speculative Buy from Neutral with a 12-month price target being set at $2.00 per share upon considering many factors. Its common stock has moved up from the December 1, 2006, price of $0.50 per share to its current price of $1.60 per share on heavy volume (3.2 million daily average shares in the month of December). On February 19, 2007, after Judge Leonard's Markman Hearing ruling, we raised our rating to a Strong Speculative Buy and raised our 12-month price target to $2.40 per share. At that time, we again cautioned investors to consider the risks from the unknown results of the '746 Patent litigation.
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SOURCE: Forgent Networks, Inc.
John M. Dutton, 916-941-8119