VETX VERTEX Sells TMS Software to Pitney Bowes; $1.65 Million Cash Transaction
Part of Asset Sales Program to Strengthen Balance Sheet $4 Million in Annual
Overhead Expense Eliminated
FAIRFIELD, N.J., Apr 22, 2002 (BUSINESS WIRE) -- VERTEX Interactive, Inc.
(NASDAQ:VETX), a leading provider of supply chain fulfillment technologies,
today announced the sale of its Windows based transportation management software
(TMS) product line to its original developer, Pitney Bowes Distribution
Solutions (PBDS), a division of Pitney Bowes Inc.
VERTEX is selling the TMS operation as part of a previously announced strategy,
to focus operations on its JAVA enterprise software business, cut costs, and
dispose of non-core operations, in a manner designed to bolster its balance
sheet. This is the first completed sale in Vertex's previously announced program
to sell assets non-essential to the core strategy. The Company is in advanced
discussions under this program to complete additional asset sales during this
June fiscal quarter. Under today's agreement, source code, documentation and all
related rights to the TMS product line have been purchased by PBDS in exchange
for $1.65 million in cash.
In connection with this sale, Vertex eliminated 34 positions and was able to
effect additional cost cutting measures which are expected to eliminate in the
aggregate $4 million of annual overhead expense.
"This transaction is in line with our previously announced strategy to focus on
our JAVA enterprise software offerings. Vertex has successfully incorporated the
key transportation components of supply chain in its JAVA warehouse solution.
JAVA is, of course, the standard language of the web, and because it can
communicate with disparate computing systems is in fact the glue that holds
e-Business together," said Bob Schilt, Vertex's Chief Technology Officer.
About VERTEX Interactive
VERTEX Interactive is an international provider of supply chain management
technology with operations in North America and across Europe. VERTEX offers a
comprehensive range of software systems and tools, from point solutions, to
integrated end-to-end hardware and software solutions, for enterprise wide and
collaborative supply chain optimization. VERTEX's broad portfolio of products
includes advance planning and scheduling with forecasting, purchasing and
multi-sourcing; fixed and mobile order entry, processing and fulfillment;
inventory and warehouse management systems. VERTEX's inventory and warehousing
product suite also covers a range of point solutions which provide instant
productivity gains including "light-directed" systems for picking and packing,
intuitive software and integration technology for handheld devices, auto ID and
printing solutions (for standard, 2D and 3D bar coding), and a suite of mobile
data collection solutions for SAP R/3 implementations. For additional
information, please visit our web site at: vertexinteractive.com.
Safe Harbor
This press release may contain forward-looking statements, including statements
relating to the Company's expected financial performance for the fiscal periods
following the quarter ended March 31, 2002, expected benefits from efforts to
reduce operating expenses and other costs, and general performance expectations
of the Company's operating units. These statements represent future events that
are subject to risks and uncertainties that could cause actual results to differ
materially from those discussed in the forward-looking statements. The Company's
recent acquisition history, history of operating losses, current expense levels
compared with its sales, coupled with the overall economic and competitive
operating environments pose a number of risks investors should take into
consideration in connection with assessing our financial and operating results.
A more detailed discussion of these and other important risk factors can be
found in the documents filed with the Securities and Exchange Commission on
Forms 10-K and 10-Q. Investors should not expect that these forward-looking
statements will be updated or supplemented as a result of changing circumstances
or otherwise, and VERTEX disavows and disclaims any obligation to do so.
CONTACT: Strategic Growth International, Inc.
Stan Altschuler/Richard Cooper
516/829-7111
info@sgi-ir.com
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-0-
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
HARDWARE
SOFTWARE
MERGERS/ACQ
SOURCE:
VERTEX
Interactive
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