Further vindication!!->Thaon Communications Continues Execution Of New Strategic Plan, Cuts Overhead By $650,000 Annually Subsidiary, CastPro, Discontinues Operations And Withdraws From Los Angeles Production Facility
SAN LUIS OBISPO, CA, May 16, 2002 (INTERNET WIRE from COMTEX) -- Thaon Communications, Inc. (OTC BB: THAO chart, msgs) announced today that its wholly owned subsidiary, CastPro, has discontinued operations in its downtown Los Angeles production facility, resulting in estimated annual savings of approximately $650,000.
Thaon's Chief Executive Officer, Adam Anthony stated, "While we steadfastly believe in the viability of Live Webcasting, the anticipated demand for CastPro's production and Live Webcasting capabilities has not materialized. Further, the ancillary streaming technology and related services are quickly becoming commodities. This combination of factors has made the profitable exploitation of the streaming frontier a tremendous challenge for CastPro as well as scores of its competitors."
Mr. Anthony continued, "In accordance with our new strategic plan, which has, at its core, the financial review of all business lines and the elimination of any non-productive overhead, we have decided to discontinue our support of operations in the CastPro studio. By doing so, we estimate Thaon will save approximately $650,000 per year."
On May 6, Thaon announced that it had completed the framework for a new strategic business plan. The new plan articulates several key objectives, including achieving significant revenue growth and profitability in its core business (serving consumer products clients with marketing strategy development, direct response media placement and fulfillment) and driving additional revenue and cash flow growth through the acquisition of other media-related organizations that complement Thaon's core business.
Mr. Anthony concluded, "As always, we are committed to driving Thaon to profitability and our actions over the past 10 days have accelerated our progress toward that goal."
About Thaon Communications
Thaon Communications, Inc. is a holding company operating through a collection of subsidiaries that provide multimedia communication solutions to a broad array of companies and industries. For additional information, please visit www.thaon.net or contact Amber Saldate at 213/252-7050 or mail to:IR@thaon.net.
Note: Any statements released by Thaon Communications that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.
CONTACT: Amber Saldate
213-252-7050
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