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The IT industry slowdown and decreased services revenues have been cited by TransNet CEO Steven Wilk for the company’s dismal financial performance in fiscal 2007.

TransNet reported a net $1.5 million loss for its fiscal year ended June 30, 2007, which Wilk said in a statement was due to increased competition from large manufacturers and offshore help-desk organizations. Wilk also stated that a decline in demand for the company’s legacy services contributed to the loss.

The unified communications and IT sales and support provider, based in Branchburg, N.J., provides system design and integration, help-desk support services and end-user training, and counts Dell, Hewlett-Packard, Lenovo and Apple among its clients.

TransNet reported net losses of $1.5 million, or $0.32 per share for fiscal 2007, and $998,125, or $0.21 cents per share, for fiscal 2006. Total fiscal 2007 revenues were $31.5 million, compared with $35.4 million reported in fiscal 2006.

However, in a Form 10K filed with the U.S. Securities and Exchange Commission, TransNet said it generated $8 million in fourth-quarter revenue, a 16 percent increase over the same quarter in 2006, when it generated $7.4 million.

Wilk also cited a gross profit margin increase of 13 percent for fourth-quarter 2007 over 8 percent in the same quarter of 2006. Wilk credited the growth to demand for the company’s new physical security solutions that it will offer to midsize corporations and educational and governmental organizations, he said.