Mindready Announces Restructuring Program to Adjust to a
Decrease in Revenues for the Second Quarter
MONTREAL, QUEBEC--JUNE 20, 2001 - 08:10 EDT
Mindready Solutions Inc., a leading supplier of
test engineering and real-time communications solutions for the
telecommunications, aerospace and multimedia industries today
announced a restructuring program aimed at rationalizing some of
its operations.
The objective of this program is to adjust to the impacts of the
overall business environment slowdown in the telecommunications
industry, the company's main market. This slowdown will account
for a significant decrease in the company's revenues and earnings
in the second quarter, compared with last quarter's results.
These impacts follow the realignment process currently undertaken
by the company's major clients, resulting in the postponement of
the implementation of many projects.
This restructuring program includes cost reduction measures, that
have already been initiated, aiming at reducing the company's
operating costs by about 4.5 millions dollars on an annualised
basis. These measures affect about 15% of the company's overall
headcount and will account for a special charge of $450,000 that
will be taken against second-quarter earnings.
"While we are taking some difficult decisions today, I am
confident that our strategy is the right one," said Mr Daniel
Dussault, president and chief executive officer at Mindready
Solutions Inc. "With the current market conditions that will
continue to be difficult in 2001, it is important to adjust our
operations and related operating expenses to a lower level of
revenues than we were forecasting. I believe those initiatives
coupled with an improving business environment should well
position Mindready for continuous growth in the future".
Mindready Solutions Inc.
Mindready is a leading supplier of test engineering services and
real-time communications solutions for embedded systems for the
telecommunications, aerospace and multimedia industries.
Recognized as a leader in IEEE-1394-based products, Mindready
offers complete innovative solutions based on this technology.
Mindready's expertise covers design and development of real-time
applications, as well as complete test engineering solutions for
complex embedded systems. Mindready's clients include Nortel
Networks, Hewlett-Packard, WindRiver, Boeing, Fujitsu, Maxtor,
Xerox and Texas Instruments. More information about Mindready and
its products and services can be found at www.mindready.com.
Forward-looking statements
Certain statements contained in this press release regarding
Mindready's future operating results or performance or business
prospects and any other statements not constituting historical
facts are "forward-looking statements". These forward-looking
statements reflect only Mindready's current beliefs and specific
assumptions with respect to future business decisions and results
are based on information currently available to Mindready.
Accordingly, these statements are subject to risks, uncertainties
and contingencies, which could cause Mindready's future operating
results, performance or business prospects to differ from those
expressed in, or implied by, these statements. |
