Plaintree Systems Announces Major Restructuring
BusinessWire, Monday, January 18, 1999 at 16:09
OTTAWA--(BUSINESS WIRE)--Jan. 18, 1999--PLAINTREE (NASDAQ:LANPF)
(TSE:LAN.) Staff reductions in Ottawa and the U.S. due to poor
quarterly results, negative cash flow Talks with potential partners
continue.
Plaintree Systems Inc. today announced a reduction of
approximately one third of its staff, as part of its efforts to
streamline operations in Ottawa and Boston. Effective immediately, the
restructuring affects 42 employees in Ottawa and another 8 in the U.S.
The employees were informed at special meetings held earlier today.
"This was an extremely difficult business decision to make and we
deeply regret having to make it," said Plaintree CEO Colin Beaumont.
"But now that we have restructured, we need to move forward to serve
and support our customers -- and leverage our relationships with
potential partners to expand our product line."
A publicly held company, founded in 1988, Plaintree Systems
develops and sells local area network switches, maintaining a
reputation for high quality products and technical support.
Headquartered in the Ottawa region, Plaintree also maintains offices
in the US and Europe. Plaintree is publicly traded in the US on NASDAQ
and in Canada on the TSE. Plaintree maintains a World Wide Web site on
the Internet at plaintree.com.
This press release includes statements that are forward looking
and based on current expectations. The actual results of the Company
may differ materially from current expectations. The business of the
Company is subject to many risks and uncertainties, including changes
in markets for the Company's products, delays in product development
and introduction to manufacturing and intense competition. For a more
detailed discussion of the risks and uncertainties related to the
Company's business, please refer to documents filed by the Company
with the SEC and Canadian regulatory authorities, including the
Company's prospectus dated May 20, 1997.
Plaintree and WaveSwitch are registered trademarks of Plaintree
Systems Inc.
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