ImageMax Announces New Focus, Spending Cuts and Expected Third Quarter Charges.CONSHOHOCKEN Conshohocken (kŏn'shəhŏk`ən), industrial borough (1990 pop. 8,064), Montgomery co., SE Pa., on the Schuylkill River; inc. 1850. Food, fabricated metals, and electronic products are produced. , Pa.--(BUSINESS WIRE)--Oct. 8, 1998--Andrew R. Bacas BACAS Bath and Camerton Archaeological Society (UK) BACAS Burial and Cremation Administration System BACAS British Airways Clubs Angling Society BACAS British Academy of Composers and Songwriters , acting Chief Executive Officer of ImageMax 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 :IMAG) Thursday Thursday: see week. announced a renewed corporate focus on internal operations and reductions in corporate overhead which will result in a third quarter restructure charge. "Management is carefully assessing underperforming business units and we have stopped our acquisition program until their performance improves," Bacas said. "To accelerate this process we have promoted Rex Lamb, a former business unit manager with 18 years industry experience, to Executive Vice President." The Company announced today that it expects to report a third quarter restructure charge, primarily connected to headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions at the corporate office and business unit consolidations, of approximately $925,000 or, on an after tax basis, $.09 per share. The Company also announced that, based on preliminary results, it expects to report a loss for the third quarter, excluding the restructure charge. "These actions will reduce current corporate overhead spending by approximately $1 million annually," commented Bacas. "The anticipated loss in the third quarter relates to the old corporate overhead structure before restructure and interest charges, as well as lower than targeted performance in certain business units. Though we expect to be profitable on a year to date basis excluding the charge, this performance reinforces the need to reduce overhead spending and focus on internal operations. "We believe that our ongoing review of underperforming business units may result in another restructure charge in the fourth quarter." ImageMax is a leading national, single source provider of integrated document management solutions. Statements in this press release which are not historical fact are 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 risks and uncertainties including, but not limited to, developments by competitors, entry of new competitors, changes in the document management outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. industry and other risks detailed in the Company's prospectus dated Dec. 3, 1997 and other filings with the Securities and Exchange Commission. |
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