Quintus Restructures and Refocuses Priorities; Company Announces Management Changes and Streamlines Staff
DUBLIN, Calif.--(BUSINESS WIRE)--Dec. 13, 2000--Quintus Corporation (Nasdaq:QNTSE) today announced a refocusing of efforts on its key priorities, including increasing support for the company's distribution partners and customers and continuing to offer Quintus' eCRM communications technology and products to the market. This renewed concentration on Quintus' core business has resulted in a restructuring effort designed to ensure that the company's revenues, expenses and resources are in line with its financial and operational goals.
As part of this restructuring effort, the Board of Directors and acting chief executive officer Paul Bartlett announced executive management changes designed to provide further operational support, as well as a staff reduction expected to result in annual cost savings of $8.3 million.
Lawrence Byrd, Quintus' vice president of strategy and a cofounder of the company, has been elevated to the position of chief strategy officer. He will work with Bartlett and the Board of Directors to ensure the restructuring provides a solid platform for renewed growth and success.
"Lawrence has been instrumental in Quintus' strategic efforts since 1984 and is a respected member of our management team," stated Bartlett. "I can think of no one better to drive our strategic initiatives forward."
Roger Nunn has been promoted to senior vice president of worldwide sales and distribution, as part of Quintus' dedication to increasing worldwide support for its partners and customers. With the assistance of John Cecala, vice president of North American sales, Nunn will combine Quintus' worldwide sales teams into a cohesive unit focused on the company's traditional mid- to high-tier customers through both strategic partners and direct distribution. The company's commitment to the technical expertise its customers rely on also will be enhanced as Muralidhar Sitaram, senior vice president of engineering, gains new responsibilities as head of information technology.
The company also announced that it has undertaken cost-reduction actions, including an immediate reduction in headcount of approximately 24 percent. Following today's reductions, the company now has approximately 400 employees worldwide.
"These steps reflect the changed dynamics in our company and marketplace," said Bartlett. "We have a responsibility to our partners, customers, shareholders and employees, and recognize the need to manage expenses wisely and aggressively. We believe the changes announced today position Quintus well for continued growth and financial success."
"Paul and I would like to express the appreciation of the Board and management team to our departing staff members and thank them for their contributions to the company," Byrd added. "The changes we are announcing will not affect R&D or our core technologies and support capabilities. The technical skills and services prized by our customers will be preserved."
As the company focuses staff on support for its partners and customers, Quintus will scale back its sales initiative directed toward emerging markets and hosting/ASP activities, which will instead be pursued through partners. Most of the reductions will affect the direct sales force, as well as some marketing and G&A. Severance and outplacement assistance will be provided to those employees affected by the restructuring. All company locations are involved in the restructuring efforts.
The company also noted that its headquarters move from Fremont, California, to Dublin, California, was completed December 11, 2000, as scheduled.
"We are dedicated to moving forward," added Bartlett. "We are aggressively continuing our search for a chief financial officer, and working to assure appropriate information is communicated in a timely fashion. I am confident Quintus will overcome the challenges it currently faces and emerge with a brighter future."
About Quintus
Quintus Corporation (Nasdaq:QNTSE) provides a comprehensive electronic customer relationship management (eCRM) solution that enables companies to increase revenue potential by improving customer satisfaction and loyalty. A technology innovator, Quintus offers products that manage all customer interactions, such as customer orders, inquiries and service requests, and allow delivery of consistent customer service across multiple communications channels, including the Internet, e-mail and telephone. Quintus is based in Fremont, California with additional offices throughout North America, Europe and Asia. For more information, call 800/337-8941, email sales@quintus.com or access the World Wide Web at www.quintus.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding our anticipated investment in marketing, training and support and the development of our indirect sales channels. Our actual results may differ materially from the results discussed in the forward-looking statements due to a variety of factors, including, among others, risks and uncertainties related to our reliance on sales of a limited number of products, our ability to attract, train and retain qualified sales personnel, our reliance on indirect sales channels and competition in our markets. For a discussion of these and other factors that may cause our actual results to differ materially from our forward-looking statements, we refer you to the periodic reports and other documents we file from time to time with the Securities and Exchange Commission.
Note to Editors: Quintus is a registered trademark of Quintus Corporation. All other trademarks and registered trademarks are the property of their respective owners.
CONTACT:
Quintus Corporation
Dana Dye, 925/479-2750
dana.dye@quintus.com
KEYWORD: CALIFORNIA
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