MIVA, Inc. Announces Restructuring Plan.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. Cash Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Expected to Be Reduced by Approximately $10 Million FORT MYERS Fort Myers, city (1990 pop. 45,206), seat of Lee co., SW Fla., on the Caloosahatchee River, near the Gulf of Mexico; founded 1850, inc. 1905. It has a tourist trade and light industry and is a shipping point for citrus fruits, winter vegetables, flowers (especially , Fla. -- MIVA MIVA Maximum In-feasible Value Assignment , 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 : MIVA), today announced a restructuring plan to reduce its cost base and generate expected savings in annualized cash operating expenses of approximately $10 million. "This next course-correcting step, while difficult, is fundamental to achieving our turnaround goal for stabilizing cash and returning to positive operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . This step complements our strategy for increasing the overall mix of MIVA-owned primary traffic, which we believe over time, will facilitate higher gross margin revenue on top of a more efficient cost base," said Peter Corrao, chief executive officer of MIVA. The savings are due primarily to a reduction in MIVA's workforce across the U.S. and Europe. The Company's active employee base is expected to decline by approximately 20% and this phase of the workforce reduction is expected to be completed by the end of May 2007. With respect to the workforce reductions, the Company expects restructuring charges in Q1 2007 of approximately $4 million. MIVA has yet to finalize its fourth quarter and full year 2006 review. The earnings release for the fourth quarter and full year 2006 is scheduled for March 2007. The actual date of the earnings release will be announced in the future. Further information regarding savings and costs related to the restructuring plan will be provided in forthcoming quarterly earnings releases. About MIVA[R], Inc. MIVA (NASDAQ: MIVA) is a leading online advertising network, dedicated to helping businesses grow. MIVA connects millions of buyers with sellers at exactly the right place and time. MIVA delivers qualified leads to advertisers, helps maximize revenue for partners, facilitates commerce for online merchants and provides relevant information to customers. The Company operates in 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. and Europe. Forward-looking Statements This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. 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 of 1995. Words or expressions such as "will," "plan," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including (1) the anticipated cost savings associated with implementation of the plan, (2) our ability to stabilize cash and return to positive operating margins, (3) the size of the actual decline in headcount, (4) the timing of the completion of the plan, and (5) the estimated charges for the restructuring and the timing of the recording thereof. Additional key risks are described MIVA's reports filed with the U.S. Securities and Exchange Commission, including the 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 fiscal 2005, and the most recently filed quarterly report on Form 10-Q Form 10-Q See 10-Q. . MIVA undertakes no obligation to update the information contained herein. [R]Registered trademark of MIVA, Inc. |
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