Comdisco Implements Strategic Operating Initiatives; Reductions in Outside Services, Facilities and Workforce Planned To Rationalize Cost Structure and Improve Profitability.Business Editors ROSEMONT, Ill.--(BUSINESS WIRE)--May 9, 2001 Comdisco, Inc., a technology services firm (NYSE NYSE See: New York Stock Exchange : CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ), announced that, reflecting its ongoing review of strategic options to maximize value for its stakeholders and to reduce overall costs, it is implementing a comprehensive plan to rationalize its use of outside services, non-labor costs, including facilities, and workforce to improve future profitability and enhance strategic opportunities for the company. This two-year plan, when fully implemented, is expected to result in an approximate 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 or improvement to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Effective immediately, in the first phase of the cost-reduction plan, Comdisco has cut its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. workforce by 10 percent or 250 positions. Approximately half of the eliminated positions are in its corporate headquarters in Rosemont, IL, primarily in infrastructure and support departments. The remaining reductions are taking place at 19 Comdisco locations throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . As a result of this reduction, Comdisco will take a one-time charge in the range of $6 million to $8 million in its fiscal third quarter ending June 30, 2001. On an annualized basis, the first phase of the plan is expected to result in an estimated labor cost savings of approximately $20 million. "During our strategic review, it has become apparent that the growth and profitability of our core leasing and services businesses have been severely challenged by a number of factors, including our cost structure," said Norm Blake, Comdisco's chairman and chief executive officer. "This is a difficult decision because it affects many talented and dedicated people. We will continue to focus on our cost structure and on treating our employees fairly and compassionately," he said. Comdisco employs 2,600 people in North America, and approximately 1,350 in Illinois. Affected employees will be given severance, training workshops, and on-site outplacement out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. assistance. About Comdisco Comdisco (www.comdisco.com) provides technology services worldwide to help its customers maximize technology functionality, predictability and availability, while freeing them from the complexity of managing their technology. The Rosemont, (IL) company offers a complete suite of information technology services including business continuity, managed web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , storage and IT Control and Predictability Solutions(SM). Comdisco offers equipment solutions to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Ventures division, Comdisco provides equipment leasing and other financing and services to venture capital backed companies. The company's revenue for the twelve months ended March 31, 2001 was $3.8 billion. |
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