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Cyberplex Restructures For Continued Profitability in 2001
16:30 EST Wednesday, January 03, 2001
TORONTO, Jan. 3 /CNW/ - Cyberplex Inc. (TSE:CX), one of North America's top Internet professional services companies, today announced organizational changes, which should ensure that the company continues its track record of profitability into 2001.
Cyberplex intends to reduce its professional services workforce by 20% bringing its overall headcount to 264, largely through the consolidation of its current production facilities and the streamlining of its non-billable functions. The company will rationalize its production facilities and redistribute the current client work to existing production facilities, to further strengthen the cost advantages that Cyberplex currently realizes through its remote development model.
"We remain committed to our strategy of leveraging our distributed business model, which focuses on sourcing business from multiple sales hubs and delivering production across a network of production centers," said Dean Hopkins, president and CEO of Cyberplex. "This model has proven very successful for us over the past several years, and one that we feel continues to provide us with a competitive advantage economically."
The company remains in a strong cash position and will take a fourth quarter restructuring charge estimated to be $7 - $10 million with cash charges estimated to be $2 - $3 million.
"Over the past six months we have seen the sales cycle lengthen as the client-base for Internet professional services has shifted towards larger corporate buyers with increasingly complex needs," said Hopkins. "In response to these rapidly changing conditions in the market, we were faced with some difficult, but necessary choices, including the very painful decision to reduce our current workforce. We are confident that we will emerge from this transition very well positioned to continue our track record of industry leading profitability."
Cyberplex invites investors, analysts and media to participate in a conference call regarding this announcement. The conference call will include a question and answer period. Participants are asked to call ten minutes prior to the scheduled start time to ensure the call begins on time.
WHEN: Thursday, January 4, 2001 at 8:00 a.m. EST
WHERE: To participate please call 1-888-343-1848
WHO: Dean Hopkins, Chief Executive Officer, Cyberplex
Geoffrey Rotstein, Chief Financial Officer, Cyberplex
Please note: If you are unable to participate in the conference call,
please dial, 1-800-558-5253, passcode: 17515675 to listen to the
documented recording. This information will be available January 4, 2001
from 10:00 a.m. EST until January 11, 2001 at 11:59 p.m. EST.