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SoundBite Communications (SDBT) Receives Reaffirmed “BUY” Rating

SoundBite Communications (Nasdaq: SDBT) provides on-demand voice, text and e-mail messaging solutions via Software as a Service (SaaS) model. The company services more than 200 organizations, enabling them to manage their customer contact campaigns spanning a variety of collections, customer care and marketing processes.

The company recently received a “Time to Buy” rating from the founder at in a reevaluation of the company’s last quarterly and full-year 2007 financials and fundamentals.

“SoundBite is the dominant player in their niche (Automated Voice Messaging/Customer Contact Solutions), growing faster than their overall market and taking market share away from competitors,” the founder stated. “In addition, their dirt cheap valuation relative to their fundamentals leaves me scratching my head as to how Wall Street can be so wrong about this company, and compels me to re-recommend SoundBite as an immediate BUY.”

Strengthening the company’s BUY rating, the company reported top line growth at 36 percent for 2007, and is expected to grow 35.4 percent in 2008. The company also showed positive earnings per share (EPS), and generated positive cash flow of approximately $3.28 million.

“As they accelerate their top line, improve their margins, and drop more income to their cash flow figure, their free cash flow will turn positive well within the next year or so, and this is when things really start ramping up, and Wall Street will really take notice,” he added.

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