BANYAN SYSTEMS ANNOUNCES SEARCH FOR NEW CEO AND CORPORATE RESTRUCTURING.WESTBORO, Mass.--(BUSINESS WIRE)--Nov. 7, 1996-- Company Expects to Record a 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. in the Range of $3.0 Million to $5.0 Million Banyan banyan (băn`yən), species of fig (Ficus bengalensis) of the family Moraceae (mulberry family), native to India, where it is venerated. Its seeds usually germinate in the branches of some tree where they have been dropped by birds. Systems Incorporated (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 :BNYN BNYN ePresence (stock symbol; formerly known as Banyan) ), a leading provider of networking solutions, today announced an executive management realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. and corporate restructuring to enhance the development and delivery of its core directory and messaging solutions including StreetTalk(R), Switchboard(TM), VINES(R) and BeyondMail(R). As part of Banyan's executive management realignment, the Company has initiated a search for a new chief executive officer. David C. Mahoney, chairman, president and chief executive officer since he founded Banyan in 1983, will become vice chairman of the Company's Board of Directors. Jeffrey D. Glidden, Banyan's senior vice president and chief financial officer since 1991, has been named acting president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , and all functional operating management will report to him. Mr. Glidden will report to John F. Burton, former president and chief executive officer of LEGENT Corporation and a Banyan director since 1991, who was named chairman of Banyan's Board of Directors. Mr. Burton will direct the 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. search. John M. Paul, senior vice president, has resigned to pursue other opportunities. In addition, Banyan announced that Jeffrey Klofft, formerly vice president of the Systems Management Products Group of Sybase, has joined Banyan as vice president of engineering and chief technology officer with responsibility for all product development and technology innovation. Eugene Lee Eugene Lee may refer to:
As a result of this reorganization, Banyan expects to record a pre-tax restructuring charge in the range of $3.0 million to $5.0 million in the fourth quarter ending December 31, 1996. The restructuring charge will provide for severance costs related to the elimination of approximately 100 positions, or 15 percent of Banyan's worldwide workforce, facility consolidations and other related costs. Working with its distribution partners, Banyan also announced it plans to substantially reduce its worldwide channel inventories. As a result, the Company expects to decrease product shipments to its channel by approximately $7.0 million to $10.0 million which will result in lower revenues and a loss in the fourth quarter of 1996. The Company also expects to take a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for previously recorded deferred tax assets in the fourth quarter of 1996. Mr. Mahoney said, "We believe that it is time for new leadership at Banyan that will sharpen our focus on providing our customers with the innovative, open systems-based directory and messaging products they need to build, expand and manage their computing infrastructures more efficiently." Mr. Glidden commented, "The positive market reception to our most recent series of product announcements, such as StreetTalk for Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. , BeyondMail 3.0 and VINES 7.0, has been encouraging. These products, coupled with our open standards-based offerings and consultative services, establish a strong foundation that reinforces our value to customers as organizations worldwide extend and expand their networks by embracing a broad range of computing environments and platform Internet." The Company noted that each of the above forward-looking statements were subject to change based on various important factors, including, without limitation, competitive actions in the marketplace and buying trends by businesses. Further information on potential factors which could affect the Company's financial results are included in the Company's 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. for the 1995 fiscal year, which was filed with the SEC at the end of March 1996, and the Company's Form 10-Q Form 10-Q See 10-Q. for the period ended June 30, 1996, which was filed with the SEC in August. -0- About Banyan Systems Incorporated: Banyan Systems (NASDAQ:BNYN) is a pioneer and leader in networking solutions. Founded in 1983 and headquartered in Westboro, Massachusetts, USA, the Company markets products worldwide through authorized network integrators, resellers and international distributors. Banyan can be reached on the World Wide Web at http://www.banyan.com. StreetTalknis a product of Banyan Systems Incorporated and not a product of McCarthy, Crisanti & Maffei, Inc. CONTACT: Jeffrey D. Glidden or Richard M. Spaulding Banyan Systems Inc. Banyan Systems Inc. 508/871-2271 508/871-2271 |
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