Wednesday August 9, 4:18 pm Eastern Time
Press Release
biz.yahoo.com
Informix Announces Strategic Initiatives to Strengthen Performance and Build Stockholder and Stakeholder Value
Realigns Organization to Increase Revenue Growth Rate and Improve Efficiency; Estimates Third Quarter Charge At Between $75 million and $90 million; Initiates Stock Repurchase Program
MENLO PARK, Calif.--(BUSINESS WIRE)--August 9, 2000-- Informix®Corporation (NASDAQ: IFMX - news), announced several strategic initiatives to strengthen its operating and financial performance and to build value for the Company's stockholders and stakeholders.
New Organizational Structure
The Company announced management and organizational changes that will further improve its market focus by more closely aligning Informix' product offerings and market strategies with its customers' requirements and buying criteria. Effective immediately, five business areas will be consolidated into two groups: DataBase Business Operations and Solutions Business Operations, which will be directed by Jim Foy, Senior Vice President and Pete Fiore, Senior Vice President, respectively. The new structure will streamline operations and is designed to focus sales, marketing, business development and engineering activities in order to optimize the Company's software and service mix, provide efficient company-wide support services and simplify internal interfaces.
``As we continue to expand into new-economy market segments, we need an organizational structure that will focus on high-growth opportunities in e-Business and business intelligence solutions while leveraging our technology leadership in data management and the growth potential of our substantial customer base. By directing our efforts on two business operations, we further integrate the mission, identity, and core competencies of the previous business groups while significantly simplifying communications with, and enhancing support of, our global field operations, our customers and our partners,'' said Peter Gyenes, President and Chief Executive Officer of Informix.
Jim Foy, 52, has been with Informix since its acquisition of Ardent(TM) Software in March 2000. He has over 25 years of worldwide management and engineering experience gained at ICL, Prime Computer and as founder and CEO of Constellation Software, which was acquired by Ardent in 1994.
Pete Fiore, 42, also joined Informix at the time of the Ardent acquisition. He brings more than 20 years of sales, marketing and engineering experience to his new position. Prior to joining Ardent as vice president of worldwide marketing, Pete held numerous management positions with CrossComm Corporation and Stratus Computer. In addition to his business operations responsibilities, Pete will head corporate marketing at Informix.
Mr. Gyenes continued, ``Jim and Pete have worked closely together now for six years, and their collaborative management styles will accelerate the integration of our organization and foster the collegial atmosphere we need to profitably build the business, serve our customers and partners and reward our stakeholders.''
In addition to the consolidation of business units, Informix plans to support its field operations with a worldwide services group responsible for corporate strategy relating to all aspects of the services the Company provides to its customers and partners including product maintenance and support, consulting, and education.
Restructuring and Related Charges
The Company also announced that, based on currently available information, it expects to take a charge in the range of $75 million to $90 million in the third quarter ending September 30, 2000. The charge will primarily relate to costs associated with the elimination of functions and facilities that have become redundant under the new corporate structure as well as to selected intangible assets. The exact amount of the charge will be available when the Company releases its third quarter earnings during the third week of October.
Additional charges in the range of $10 million to $15 million relating to this corporate realignment will be taken during a transition period which is expected to last through the first half of 2001. Management expects that annualized cost savings resulting from its corporate restructuring will range from $70 million to $80 million.
Mr. Gyenes said, ``We believe that Informix is in an excellent position to achieve significant operating leverage over the intermediate term as we accelerate revenue growth and increase company-wide efficiencies.''
Stock Repurchase Program
Effective Monday, August 14, 2000, Informix will begin its repurchase of 6.4 million shares. This is the maximum number of shares allowed to be repurchased by the Company at this time in consideration of the Ardent acquisition, which was accounted for as a pooling of interests transaction.
Commenting on this action, Mr. Gyenes noted, ``By all measures, Informix' current market valuation reflects a significant discount to its industry peer group as well as to the value of its product/service portfolio and customer base. I am pleased that the Board agreed with this assessment and has authorized us to take advantage of what we believe is an excellent market opportunity.''
At June 30, 2000, the Company had cash and cash equivalents of over $300 million and was debt free. Mr. Gyenes stated, ``Our solid financial position gives us the flexibility to move forward with our strategic growth plan to address high-growth markets with differentiated products and services.''
About Informix
Informix Software is the technology leader in software infrastructure and solutions for the Internet. Informix brings a focused set of products and services that integrate e-business and business intelligence on an Internet infrastructure. The Company's highly scalable database engines, in addition to its business intelligence, content management and e-commerce solutions, enable customers to succeed in the new economy. For more information, contact the nearest sales office or visit the Web site at www.informix.com.
(c)2000 Informix Corporation. All rights reserved. The following are trademarks of Informix Corporation or its affiliates, one or more of which may be registered in the U.S. or other jurisdictions: Informix®and Ardent(TM).
Safe Harbor Statement
This public announcement contains forward-looking statements, which are subject to numerous risks and uncertainties. These forward-looking statements include without limitation those as to:
The extent to which the Company will realize the announced cost savings from its corporate reorganization,
The extent to which the Company will strengthen its operating and financial performance and build stockholder value,
The extent to which the Company will capitalize on perceived high-growth market opportunities,
The extent to which the Company can achieve significant operating leverage, accelerate revenue growth and increase company-wide efficiencies,
The extent to which the e-business and business intelligence markets continue to grow, and
The extent to which the company can maintain its status as a technology leader in software infrastructure solutions for the Internet.
Risks and uncertainties could cause actual results and events to differ materially from historical, anticipated or hoped for results and events. Investors and potential investors should review carefully the description of the risks and uncertainties which, together with other detailed information about Informix Corporation, is contained in the periodic reports that the company files from time to time with the Securities and Exchange Commission. This public announcement contains information that is accurate as of August 9, 2000, the date of the public announcement. The company disclaims any obligation to update or correct the information as a result of financial, business or any other developments occurring after August 9, 2000.
Note to Editors: Informix news releases are available at no charge through Business Wire's NewsOnDemand fax service. To immediately receive an index of available releases, call 800/356-0851.
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Contact:
Informix Corporation
Yon Yoon Jorden, 650/926-6840
Yjorden@informix.com
or
Morgen-Walke Associates, Inc.
Gordon McCoun, 212/850-5600
gmccoun@morgenwalke.com |
