PYRAMID ANNOUNCES RESTRUCTURING
PYRAMID ANNOUNCES RESTRUCTURING SAN JOSE, Calif., Oct. 6 /PRNewswire/ -- Pyramid Technology Corp.
(NASDAQ: PYRD) announced today several cost-reduction measures that will result in a restructuring charge of between $22-24 million for its fourth fiscal quarter ended Sept. 30, 1992.
The company also announced that it expects to report fourth quarter revenues of approximately $51 million, compared with revenues of $48.6 million for the quarter ended June 30, 1992. With the restructuring, and an expected loss from normal operations, the company will report a substantial loss for its fiscal 1992 fourth quarter. Final results will be reported on Oct. 29, 1992. The cost-reduction measures taken by the company include a 10 percent
reduction in force (approximately 110 positions), the consolidation of excess facilities, and the write-down of inventory and the elimination of certain balance sheet intangibles. The reduction-in-force will not impact the company's strategic product development or marketing programs.
"For the past year, we have been working to align Pyramid with the new realities of our markets," said Richard Lussier, president, CEO and chairman. "The steps we are announcing today will help to complete that process by bringing resources -- and expenses -- into line with the company's strategy aimed at leading the movement to open and resize corporate data centers. "For the past six years, Pyramid has been developing the expertise needed to be a leader in this market segment," Lussier said. "On Oct. 13, we will announce a new generation of products that will greatly enhance our portfolio of offerings. We believe that these products, together with other changes we have been making throughout the organization, and today's steps to reduce expenses, will help the company to return to profitability." The company's cash flow remained positive in the fourth quarter, and the company said that the announced restructuring actions are intended to reduce annual spending by $10 million-$12 million. The company expects to report cash of approximately $26 million as of Sept. 30, 1992, with virtually no long-term debt. Founded in 1981, Pyramid builds and markets the MIServer line of high-performance servers for the open commercial marketplace. Pyramid supports the largest UNIX-based relational databases in the world, and is focused on providing products and services with the reliability, functionality and expertise required to support mainframe-class, business-critical applications. -0- 10/6/92 /CONTACT: Gary Valenzuela of Pyramid Technology, 408-428-8412/ (PYRD) CO: Pyramid Technology Corporation ST: California IN: CPR SU: RCN
TB-TM -- SJ004 -- 7208 10/06/92 16:09 EDT
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|Date:||Oct 6, 1992|
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