Engage Streamlines Business to Improve Operating Efficiencies.Business Editors, High Tech Writers Completion of Integration Expected to Generate Operating Cost Savings of Approximately $21 Million Annually, Improve Customer Focus and Strengthen Engage's Leadership Position in Interactive Marketing ANDOVER, Mass.--(BUSINESS WIRE)--Sept. 20, 2000 Engage, Inc. (Nasdaq: ENGA), a results-oriented online marketing company and majority-owned operating company operating company A business that engages in transactions with outsiders. of CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc., today announced that it has streamlined business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets around the world by consolidating its five business divisions into two and by reducing its workforce by 175, or approximately 13%. Today's action will enable the company to accelerate its path to profitability and sharpen its focus on providing customers with interactive marketing solutions. "Engage has completed several major acquisitions this year to strengthen its leadership position in interactive marketing. The integration of these companies has resulted in natural redundancies that led to this consolidation," said Paul Schaut, president and 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. of Engage. "In addition, our customers have told us that they want to deal with an integrated provider of media, analytics and marketing infrastructure solutions. Our objective with this action is twofold: to achieve profitability as soon as possible and to deliver in a unified fashion interactive marketing solutions that maximize the return on our customers' marketing dollars, both in the U.S. and abroad." Because the company will now operate under two divisions as opposed to five, Engage expects to provide its customers with seamless, unparalleled integration of solutions and services. Engage will now consist of the Engage Media and Engage Software divisions. The Engage Media division combines Engage Media, Engage Business Media, new email offerings, Engage Knowledge, AdKnowledge and I/PRO. Debby McWhinney, will continue as president of the expanded media division. Formerly the executive vice president of Business Planning and Strategy of Visa International, McWhinney is a seasoned executive with broad business expertise and the ability to create effective and efficient operating environments. Dean Wiltse, an experienced software veteran, will run the Engage Software division, comprised of Engage Enabling Technologies and the recently acquired MediaBridge. Dean has been with Engage for over a year managing sales, marketing, development and support of the Engage profiling technology products and was instrumental in bringing MediaBridge and Engage together. Dean has over 20 years of senior management experience in the software and computer industries. He has held senior management positions with Avid Technology "Avid" redirects here. For the "Advancement Via Individual Determination" educational program, see AVID. Avid Technology, Inc NASDAQ: AVID is an American company specializing in video and audio production technology; specifically, digital non-linear media editing (NLE) , Vivo Software Vivo Software was a pioneer internet streaming media company which was acquired by RealNetworks in March 1998. Vivo Software designed the Vivo Video/Audio platform, including its encoding tools and end-user VivoActive Player. (acquired by RealNetworks), VST VST VLT (Very Large Telescope) Survey Telescope VST Vietnam Standard Time (Gmt+0700) VST Virtual Studio Technology (Midiware music production technology) Technologies and Radius. Engage also announced that Thomas Rothfels has been appointed to the position of EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition of international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . Rothfels is the former president of Toronto-based Virtual Billboard Network, which, following an acquisition by Engage earlier this year became Engage Canada. As EVP of international operations, Tom will be responsible for Engage's global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. outside of the U.S. Having worked 10 years in media, Tom brings a broad range of management experience and leadership to the company. Prior to Engage, Tom was CEO of Gallop and Gallop Advertising, Inc., and, in 1996, built Virtual Billboard Network, its online advertising division. Tom quickly grew Virtual Billboard Network into one of the largest Canadian Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. networks, which led to Engage's acquisition. "Engage has acted quickly to conform to the new realities of the global Internet economy, which requires all Internet companies to show a solid plan and progression toward profitability," added Schaut. "In addition, the company's new structure positions it to take full advantage of the rapidly growing marketing infrastructure and media businesses. Engage is the company that will provide solutions to transition traditional marketers to the interactive world and enable companies to deliver a consistent message throughout a consumer's online and offline experience." The workforce reduction is expected to generate operating cost savings of approximately $21 million annually. In conjunction with the announcement, Engage will record 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 $3.5 to $4.0 million in the first quarter of 2001. About Engage(R): Engage, Inc. (Nasdaq: ENGA), a results-oriented online marketing company and a majority owned operating company of CMGI, Inc., provides marketers with media, analysis and technology solutions. Based in Andover, Massachusetts, Engage has European headquarters in London and offices worldwide. For more information on Engage and its divisions please call 877-U-ENGAGE or visit www.engage.com . Engage Statement Under the 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 This press release includes forward-looking information. All statements other than statements of historical fact, including without limitation, statements regarding the expected operating cost savings, restructuring charges, Engage's ability to accelerate its path to profitability, the expected benefits of operating as two divisions, and those with respect to Engage's objectives, plans and strategies set forth herein are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties which could cause Engage's future results of operations to differ materially from those anticipated, and other risks detailed in Engage's 1999 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. and from time to time in Engage's other reports filed with the SEC. |
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