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Wednesday January 17, 6:00 am Eastern Time
Press Release
SOURCE: FutureLink Corp.
FutureLink Realigns ASP Business to Build on Its Core Professional Services; Company Expects to Reach EBITDA Breakeven by End of Q4 2001
LAKE FOREST, Calif., Jan. 17 /PRNewswire/ -- FutureLink Corp. (Nasdaq: FTRL - news), a leading provider of integration solutions, hosted application services and one of the first application infrastructure companies to provide software as a service, today announced a corporate realignment plan designed to reduce operational costs and increase profitability by focusing on its core business of offering a full range of professional services.
The company will capitalize on its experienced integration solutions talent by re-emphasizing its professional services business and continuing to grow its ASP business. Realigning the company's resources also enables FutureLink to become true partners with its customers by formulating information technology (IT) solutions that meet their business critical application and infrastructure needs.
``Our goal is to improve the financial situation and market position of the company by the end of Q4 2001, and the best way to do that is to focus our attention and efforts on the things that made FutureLink successful from the beginning,'' stated Howard E. Taylor, president and CEO. ``This company was founded on the philosophy that our customers determine what they want from a professional services company and we deliver it. We will continue to do just that.''
Taylor announced that as a part of the company's realignment plan it reduced its 660-person workforce by approximately eight percent. These reductions took place in North America and severance packages were offered to those workers directly affected.
The staff reductions and resulting cost-savings in operating expenses are expected to position the company to reach EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) breakeven by end of Q4 2001. More than 70 percent of FutureLink's revenue -- $91.4 million as reported through the nine months ending September 30, 2000 -- was derived from its professional services business.
``Improving the company's cost structure and focusing on its core business will enable FutureLink to maintain its position as a leader in the industry. The FutureLink team possesses the expertise, flexibility and determination required to adjust to the needs of the market and our customers, and is dedicated to moving quickly and aggressively to make these improvements,'' added Taylor.
The company delivers its products and services in partnership with several key firms, including Microsoft, Citrix Systems, Inc., Compaq, EMC Corporation, Cisco Systems, Great Plains, Onyx and others.
About FutureLink
FutureLink, a leading provider of integration solutions and hosted application services, is one of the first application infrastructure companies to provide software as a service.
The company provides customers with systems integration services and subscription-based access to software applications anytime, anywhere -- from their own data center or FutureLink's -- with the speed, simplicity, reliability and security of a commonly used utility. With FutureLink's offerings, customers can precisely manage their IT costs and avoid expensive and complicated maintenance and support concerns.
FutureLink, the founding member of the ASP Industry Consortium, markets its offerings through a network of channel partners, independent software vendors (ISVs), software resellers and systems integrators throughout the United States, Canada, and the United Kingdom. For more information about the company visit the FutureLink website at futurelink.net.
Forward-looking statements and comments in this news release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the company, including the completion of any acquisition transaction or the achievement of future operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the company from time to time with the Securities and Exchange Commission in the future.
FutureLink, the FutureLink logo and The Application Utility Company are trademarks and/or registered trademarks of FutureLink Corp. All other products and services are the trademarks of their respective owners.
For further information, please contact: Courtney Sue Waldfogel of Maples Communications, 949-253-8737, cwaldfogel@maples.com, for FutureLink Corp.; or Troy Cleland, Investor Relations of FutureLink Corp., 888-464-2768, invrel@futurelink.net.
SOURCE: FutureLink Corp. |
