You stupid schmuck, stick this where the sun don't shine: "AremisSoft Changes Mgmt, Working With SEC
2001-07-31 17:56 (New York)
( BW)(NY-AREMISSOFT)(AREM) AremisSoft Announces Key Management Changes and
Additions
Business Editors
NEW YORK--(BUSINESS WIRE)--July 31, 2001--AremisSoft Corporation
(NASDAQ:AREM)--
- Announces Cooperation with Securities and Exchange Commission
Investigation
- Anticipates Second Quarter Results Reporting Delay
- Comments on Guidance for the Second Quarter and Year End
AremisSoft Corporation (NASDAQ:AREM), a leading international supplier of
enterprise-wide software and Internet-enabled solutions for the manufacturing,
hospitality, healthcare and construction industries, announced today the
appointment of Roys Poyiadjis as Chairman and Chief Executive Officer.
Previously Mr. Poyiadjis was Co-CEO of AremisSoft.
Dr. Lycourgos Kyprianou, Chairman, Founder and Co-Chief Executive Officer,
has retired from his position as Chairman and Co-Chief Executive Officer and as
a member of the Board of Directors. Dr. Kyprianou has accepted the position of
Founding Chairman of the Company, a non-executive advisory position, in
recognition of his founding the Company and his long years of service.
To further strengthen the management team and Board, the Company also
announced that Dr. Paul I. Bloom, recently appointed President of the US Group,
will assume the title of President and Chief Operating Officer of AremisSoft
and has been elected to its Board of Directors.
Mr. Poyiadjis commented, "We appreciate Dr. Kyprianou's contributions to the
Company and look forward to his continued service in his role as Founding
Chairman. Paul and I have worked together for several years and he has made
significant contributions towards building and strengthening our U.S. based
business. I look forward to his assistance in helping to move AremisSoft
forward around the globe. AremisSoft is entering a new phase in its
development. I believe we need to sharpen our focus on key growth opportunities
and coalesce our management structure to be more responsive to the rapidly
changing business environment in which we operate."
The Company also announced the appointment of David Latzke as Chief Financial
Officer, replacing Michael Tymvios, who has resigned his position as Chief
Financial Officer and Director of the Company, citing health reasons. Mr.
Latzke, the former Chief Financial Officer of Fourth Shift Corporation, a
wholly owned subsidiary of AremisSoft, has joined AremisSoft as Chief Financial
Officer. Mr. Latzke joined Fourth Shift in 1993 and was CFO when the Company
was acquired by AremisSoft in April of this year. Prior to his tenure at Fourth
Shift, Mr. Latzke was a ten year veteran of Arthur Andersen, in its audit and
business advisory group. He holds a BA in accounting from the University of
Northern Iowa and is a CPA.
Mr. Poyiadjis commented, "All of us are pleased to welcome David and look
forward to working closely with him. His experience at Fourth Shift will be
invaluable to us as we move the Company's financial reporting and accounting
functions from Europe and India to the United States."
The Company also announced that it is cooperating with a Securities and
Exchange Commission investigation into, among other things, its contract with
the National Health Insurance Fund of Bulgaria ("NHIF"). In connection with the
Securities and Exchange Commission investigation, the Company has engaged its
independent auditors PKF, formerly known as Pannell Kerr Forster, an
international accounting firm, to conduct a special review of the payments the
Company received in connection with its contract with the NHIF for fiscal year
2000. While PKF has not completed its review, it has advised the Company that
it has been able to confirm the Company's receipt of $1.7 million from the
NHIF. However, it is still seeking additional documentation to confirm the
receipt of an additional $5.4 million of revenue recognized by the Company in
fiscal year 2000. The $5.4 million in revenue is related to a contract between
that third party and AremisSoft that gives that third party certain exclusive
rights under AremisSoft's contract with the NHIF. However, because the Company,
despite its continued efforts, has been unable over the last several days to
contact executives who are most knowledgeable about the NHIF contractual
arrangements within its Indian-based Emerging Markets group, it has been unable
to provide PKF with the information it needs to complete its review of the NHIF
contract. In order to address this issue, the Company, in addition to asking
PKF to perform its special review, has asked its attorneys to review the
contracts and payments in question.
The above key management changes and additions, including the resignation of
the former Chief Financial Officer, and the Company's special review by its
accounting firm PKF will further delay AremisSoft's reporting of its financial
results for the second quarter of 2001. The Company expects that earnings and
revenues for the second quarter, as well as for the year, will fall
substantially short of Wall Street analysts' estimates. About AremisSoft
Corporation
AremisSoft develops, markets, implements and supports enterprise-wide
applications software targeted at mid-sized organizations in the manufacturing,
healthcare, hospitality and construction industries. The Company's software
products help streamline and enhance an organization's ability to manage and
execute mission-critical functions such as accounting, purchasing,
manufacturing, customer service and sales and marketing. AremisSoft reported
total revenue of $123.6 million for the twelve months ended December 31, 2000.
AremisSoft has approximately 1,300 employees, with sales in over 20 countries
and a customer base in excess of 8,000. The Company also operates software
development and support facilities in India, with approximately 300 employees,
which provides significant organizational efficiencies and cost advantages in
software development and support.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act of 1995: All statements, other than
historical facts, included in the foregoing press release regarding the
Company's financial position, business strategy, and plans of management for
future operations are "forward looking statements." These statements are based
on management's beliefs and assumptions, and on information currently available
to management. Forward looking statements include, but are not limited to,
statements in which words such as "expect," "see," "anticipate," "intend,"
"plan," "believe," "estimate," "consider," or similar expressions are used.
Forward looking statements are not guarantees of future performance. They
involve risks, uncertainties, and assumptions, including risks discussed under
"Risk Factors" in the Company's annual report on Form 10-K, SEC File No.
0-25713, all of which are incorporated herein by reference. The Company's
actual results and stockholder values may differ materially from those
anticipated or expressed in these forward looking statements. Many of the
factors that will determine these results and values are beyond the Company's
ability to control or predict. Readers of this press release are cautioned not
to put undue reliance on any forward looking statement. The Company undertakes
no obligation to publicly update these forward looking statements, whether as a
result of new information, future events or otherwise.
--30--jgm/ny*
CONTACT: AremisSoft Corporation
Paul Bloom, 856/869-0770
paul.bloom@aremissoft.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS SOFTWARE MANAGEMENT CHANGES Today's
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(END) DOW JONES NEWS 07-31-01
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