Bogen Provides First Quarter Guidance; Cost Cutting Plan Now Underway with Expected Annualized Savings of Over $1.5 Million.Business/Technology Editors RAMSEY, N.J.--(BUSINESS WIRE)--April 20, 2001 Bogen Communications International, Inc., (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 :BOGN) ("Bogen") today announced that it expects first quarter 2001 sales to be approximately 15% below the $16.3 million reported in the comparable quarter last year. Because of this reduction in sales, the Company expects to produce a moderate loss in the first quarter of this year, as compared to net income of $302,000 reported for 2000's first quarter. Bogen management is implementing immediate measures designed to cut costs and enhance the Company's profit position. These steps include reductions in headcount of approximately 10% of Bogen's non-Apogee U.S. business, and other actions targeted at reducing the Company's domestic overhead and operating costs operating costs npl → gastos mpl operacionales . Personnel and other already identified cost reductions are expected to yield 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. savings of more than $900,000, beginning over the course of the second quarter. The Company is targeting another $600,000 in annualized savings to be achieved through reduced purchases and cost efficiencies, to take effect in the third and fourth quarters of this year. First quarter dollar-denominated revenues are approximately 6% ahead in Europe versus the same period last year, and almost 14% ahead measured in deutsche marks, mostly driven by growth in Speech Design's Unified Messaging Having access to e-mail, voice mail and faxes via a common computer application or by telephone. For example, unified messaging may send faxes and digitized voice mail to a mail server that turns them into e-mail attachments. business. The Company's domestic business, much of which is conducted with Telco customers, is down about 24% as compared to last year's first quarter. Management pointed out that the first quarter is historically Bogen's weakest one. And while the revenue shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. experienced by the Company is a reflection of the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. facing providers of communications equipment generally, indications are that Bogen's market share in its Telco, Commercial Audio, and Engineered Systems businesses is stable or improving. Key U.S. supply house customers, however, continue to manage their inventory levels down. Continued growth in Europe is an encouraging sign, and provides support for Bogen's plans to expand its Unified Messaging business. The outlook for the balance of the year depends upon the economy and a recovery of the domestic markets for Bogen's products, as well as on the Company's ability to develop and introduce new products that allow it to gain share in new and existing markets. About Bogen Bogen Communications International, Inc., based in Ramsey, New Jersey Ramsey is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 14,351. Ramsey was incorporated as a borough by an Act of the New Jersey Legislature on March 10, 1908, from portions of Hohokus Township (now and Munich, Germany, develops, manufactures, and markets telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. peripherals, sound processing equipment, and Unified Messaging products and services. Bogen's products are sold to commercial, industrial, professional and institutional customers worldwide. Except for historical information contained herein, the statements made in this release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including general market conditions, new technological developments, competition, potential acquisitions and divestitures, the availability of financing alternatives and other risks. Certain of these risks, factors and other considerations are detailed from time to time in Bogen's reports on file at the Securities and Exchange Commission, including Bogen'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 fiscal year ended December 31, 2000. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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