724 Solutions to Rebalance Costs to Drive Profitability; Cost Reductions and Workforce Re-alignment to Focus on Core Markets.Business Editors & High-Tech Writers TORONTO--(BUSINESS WIRE)--Aug. 22, 2002 724 Solutions (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SVNX) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :SVN SVN Subversion (version control system) SVN Slovenia (international traffic code) SVN Social Venture Network SVN South Vietnam SVN Secure Virtual Network SVN Supervised Visitation Network ) today announced a series of actions to reduce the company's operating costs operating costs npl → gastos mpl operacionales and accelerate its path to profitability. These changes will also balance the company's investment across its two key markets, mobile network operators and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies. As part of this initiative, the company will reduce its workforce by approximately 100 people globally by the end of the third quarter 2002. The re-alignment of its workforce following this reduction will allow 724 Solutions to continue to focus on delivering software solutions to mobile network operators and in servicing its global install base of financial services clients. The company estimates that these efforts will result in an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. cost savings of approximately $16 million - the full benefit of which the company expects to be realized in the fourth quarter of fiscal 2002. 724 Solutions will take a cash restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. relating to this action of approximately $5-7 million and an unrelated non-cash restructuring charge from the write down of earlier investments of approximately $7 million in the third quarter of 2002. The company is re-affirming its guidance for modest revenue growth in the quarter. "We have made substantial progress over the past year, in reducing the operating costs of our business. As we have said in the past, we continue to evaluate our relative investment in the different segments of our business in order to fit market opportunities," said John Sims, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , 724 Solutions. "In the second quarter we returned the company to quarterly revenue growth, and we believe that this trend will continue powered by the sale of alerts-based applications for financial services companies, and our range of offerings for the next generation of networks being implemented by mobile network operators." 724 Solutions believes strongly that the key to adoption in the financial services space is through a proactive usage model that is made possible by leveraging our flexible, intelligent alerts platform. Additionally, as mobile operators evolve from circuit-based to packet-based networks, they have a critical need for an Internet Protocol (IP) gateway that demonstrates high availability, scalability and an attractive cost of ownership. 724 Solutions' Mobile Internet Gateway delivers these core values and is complemented by other products including 724 Solutions Alerts Generator, 724 Solutions Message Manager and 724 Solutions Payment Server. About 724 Solutions Inc. 724 Solutions Inc. (NASDAQ: SVNX; TSE: SVN) powers the world's largest financial institutions and mobile operators to make the most of m-Business. Our solutions transform business applications into proactive solutions that deliver timely information, invite immediate response and enable effortless mobile transactions. Each implementation provides new convenience to the end-user and strong return on investment to the business owner. With headquarters in Toronto, Canada, the company has development and sales offices around the world. For more information, visit www.724.com This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements include the statements herein regarding: the services and products that will be offered by 724 Solutions, the benefits that businesses will obtain from these services and products and future demand for these services and products. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including the risk that 724 Solutions will be unable to deploy the solutions and products stated herein, the risk that the demand for these solutions and products, or for 2.5G and 3G networks, will not increase as presently anticipated and other risks described in 724 Solutions' Securities and Exchange Commission filings, including its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . These risks are also described in 724 Solutions' filings with the Canadian Securities Administrators Canadian Securities Administrators(CSA) is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets. . 724 Solutions does not undertake any obligation to update this forward-looking information, except as required under applicable law. |
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