DSL.net Announces Actions to Reduce Spending for 2001.Business Editors NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn.--(BUSINESS WIRE)--Dec. 1, 2000 DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary .net, 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 NM: DSLN), a direct provider of high-speed data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. and Internet solutions, today announced that it is reducing its workforce by 141 employees, or approximately 28%. The Company is taking this action as part of a comprehensive plan to reduce spending levels and to extend the timeframe the company needs to raise additional capital. As a result of this action, the Company expects to realize approximately $8 million in personnel expense savings in fiscal 2001 and to incur a one-time 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. of no more than $1 million in the fourth quarter 2000. Commenting on this action, Keith Markley, 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. of DSL.net, said, "Since joining DSL.net in early November, I have focused my efforts on improving efficiency in our operations, reducing spending levels and growing revenue. The decision to reduce the workforce was made in conjunction with our decision to slow down the deployment of our network into new territories, and then focus on continued revenue growth and quality customer care." Markley added, "While we have a strong balance sheet with minimal debt, the actions we are taking are designed to proactively prevent the financial difficulties other Internet-related companies are experiencing in today's market climate. As discussed during our third quarter earnings call, we are developing a comprehensive plan to keep us positioned for continued revenue and line growth, while we also pursue further reductions in spending aimed at network cost and process efficiencies." The Company will hold a conference call on December 20, 2000 at 5:00 p.m. Eastern time/2:00 p.m. Pacific time to discuss its plans and expectations for fiscal 2001. To listen to the call over the Internet, please go to www.vcall.com, and then enter the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors DSLN. To listen to the call via telephone, please dial 1-800-840-6216. A replay will be available on DSL.net's web site (www.dsl.net) and by dialing 1-800-633-8284 and entering the reservation number 17129553 for 72 hours after the call. About DSL.net Based in New Haven, Conn., DSL.net, Inc. is a high-speed data communications and Internet access provider See ISP. (networking, company) Internet Access Provider - (IAP) A company or other origanisation which provides access to the Internet to businesses and/or consumers. that uses digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and technology to provide high-speed Internet See broadband. access solutions to small and medium-sized businesses, primarily in second and third-tier cities throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . DSL.net allows smaller businesses to migrate their operations online and more equally compete in the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . As of November 1, 2000, DSL.net had provided service or had installed equipment in over 375 cities. For more information regarding DSL.net solutions and services visit www.dsl.net, e-mail info@dsl.net, or call 1-877-DSL-NET1. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to a variety of risks and uncertainties, many of which are beyond DSL.net's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things, (i) DSL.net's unproven business model, which may not be successful; (ii) DSL.net's ability to execute its business plan in a timely manner to generate the forecasted financial results; (iii) DSL.net's need for additional funds during 2001, which may not be available on acceptable terms or at all, which could adversely impact DSL.net's ability to implement its business plan; (iv) the need for DSL.net to achieve sustained market acceptance of its services at desired pricing levels; (v) competition; (vi) DSL.net's extremely limited operating history, which makes it difficult to evaluate its business and prospects; (vii) the difficulty of predicting the new and rapidly evolving high-speed data communications industry; (viii) regulatory, legislative, and judicial developments, which could adversely affect the way DSL.net operates its business; and (ix) DSL.net's ability to recruit and retain qualified personnel, establish the necessary infrastructure to support its business, and manage the growth of its operations. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. DSL.net undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional information regarding these and other risks faced by DSL.net, see the disclosure contained under "Risk Factors" in DSL.net's 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. for the year ended December 31, 1999, which has been filed with the Securities and Exchange Commission. DSL.net is a trademark of DSL.net, Inc. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion