Starbase Announces Corporate Restructuring;
Company's Financial Outlook Is In-Line With Previously Reported Guidance
January 03, 2002 08:15:00 AM ET
SANTA ANA, Calif.--(BUSINESS WIRE)--Jan. 3, 2002--Starbase Corp. SBAS, the leading provider of end-to-end collaborative products for the development and management of code and content for enterprise and e-business applications, today announced a corporate- wide restructuring and cost-reduction initiative to improve operating efficiency and streamline reporting structures.
The reorganization has been undertaken to realign operating efficiencies and assist the company in reaching profitability. In support of these objectives the board of directors has suspended its cash remunerations until the company achieves profitability. Executive staff bonuses, typically representing 25% to 30% of total compensation have been suspended since April.
These measures accompany a general corporate restructuring, completed yesterday to streamline operations and reduce expenditures.
Jim Harrer, president and COO of Starbase, stated, "The staff reductions of 12%, initiated yesterday and the operational expense reductions we are currently undertaking as part of the reorganization are in support of our mission to reach profitability and increase shareholder value.
"The reorganization will enable the company to focus on its core businesses, support stronger growth markets, enhance client services and boost operational efficiency throughout the organization."
"We are concentrating on building a customer centric focus here at Starbase, as well as developing a suite of products, applications and services that will continue to set new standards for enterprise application development management," added Harrer.
"Today's successful company must be focused on the customer, providing outstanding yet cost-effective technology solutions that will meet their business needs today and in the future."
Continued Harrer: "It's our objective to ensure that customers reap the greatest return on their technology investment. As part of this commitment we will continue to build long-standing relationships with our customers, working as partners to shape the direction of Starbase."
"As we look to the economic future of Starbase, we remain confident and comfortable with the previously reported financial guidance for third quarter of FY 2002 and the reported guidance for fourth quarter of FY 2002," stated Harrer.
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