U.S. Wireless Data Consolidates Operations Centers in a Drive Toward Profitability
NEW YORK--(BUSINESS WIRE)--Aug. 9, 2001--U.S. Wireless Data, Inc. (USWD) (OTC: USWE - news), a leader in wireless transaction processing, has announced the consolidation of its technical operations into the company's Palmer Lake, Colorado facility.
The consolidation is a major milestone in USWD's integration of its facilities and operations from recent acquisitions, including NXT Corporation, acquired in December of 2000, and Cellgate Technologies, acquired in November of 2000. USWD's consolidation process began in January of this year and the latest integration efforts are scheduled for completion by November 30, 2001. The recent consolidation announcement will result in a reduction of 33 employees, bringing the total reductions since January 2001 to 47 employees or nearly 50% of the workforce.
The acquisition of NXT brought together complementary technologies that provide a full array of services related to credit card, debit card, and other point-of-sale transactions. Although similar in many ways, the services acquired with NXT utilize landline networks, whereas USWD's Synapse(SM) services utilize wireless networks. By fully integrating operations, administration, sales and support, USWD will achieve significant cost savings and can offer a seamless package of wired and wireless transaction products and services, creating the only ``one-stop-shop'' in the transaction processing industry.
Dean M. Leavitt, Chairman and CEO of U.S. Wireless Data, explained, ``These actions reflect our commitment to increase shareholder value by consolidating our operations while at the same time maintaining the quality service and technological expertise that our customers expect.''
``Our integration efforts since January 2001 have reduced operating expenses by 32%, which represents $8.4 million in annual cost savings, moving us substantially closer to our goal of breakeven cash flow from operations in early calendar year 2002. On the revenue side, we have grown our revenue sevenfold to $4.1 million in the past fiscal year as the number of retail locations that we serve continues to expand monthly.''
In conjunction with the latest integration activities, USWD recorded pretax charges totaling $2.4 million, or $0.20 per share, in the fourth quarter of fiscal year ended June 30, 2001, related to the consolidation for moving costs, disposal of assets not used in the primary operations facility, and the estimated impact of vacating the unused facilities, net of potential subleases. In addition, the company will record $1.2 million or $0.10 per share in the first fiscal quarter of 2002, related to employee severance, benefits, and relocation costs. |
