CYNET Announces Appointment of President/COO and Restructuring
CYNET Announces Appointment of President/COO and Restructuring Plan
Business Strategy to Focus on the Company's Core Messaging Products
Including High Speed Wireless Services & Cost Reductions to Accelerate
Plans for reaching EBITDA Positive
HOUSTON, May 22 /PRNewswire/ -- CYNET, Inc. (OTC Bulletin Board: CYNE), a
provider of electronic messaging solutions today announced that the CYNET
Board of Directors ratified the appointment of Robert P. Demyanovich as
President/COO of CYNET, Inc. to lead the reorganization and expansion of the
Company's operations. Mr. Demyanovich brings over 24 years of communications
and technology experience in the electronic paper based messaging business
that includes electronic mail, facsimile and paper based overnight, priority
and direct mail messaging.
From 1996-2001, Mr. Demyanovich served as President, Co-Founder and
Managing Partner of Mail2Media, a Michigan-based communication company that
created customized software that allows users to send fax, email, paper mail,
video, and audio through desktop and internet based software. The day-to-day
management and operations of Mail2Media has been placed in the hands of its
current management structure and Mr. Demyanovich will act only in an advisor
capacity within Mail2Media during his term with CYNET, Inc. From 1993-1995,
Mr. Demyanovich founded Mail-Away Corporation, a paper based communications
company that was sold to Lason Systems. From 1988-1992, Mr. Demyanovich was
employed as Vice President of Sales for Diversified Data, a Michigan-based
communications company and from 1978-1987, Mr. Demyanovich was employed as
Vice President of Sales for Churchill Communications, a 25 year old
New York-based communications company.
"I am excited to have Bob join our team bringing his talents and skills,
said Vincent W. Beale, Sr., Chairman and CEO of CYNET, Inc. "He is a proven
leader and has already been instrumental in helping the company shape its
revised business plan to focus on capitalizing on the company's core products
and services along with aggressive cost reduction initiatives as the primary
drivers in accelerating plans to reach positive EBITDA."
"We have focused our plan to take advantage of our core products and
services in highly targeted markets," said Bob Demyanovich, president and COO
of CYNET, Inc. "By concentrating our efforts in a focused manner, execution
of this plan should allow us to significantly accelerate the time period for
us to reach EBITDA positive."
The company currently estimates that its restructuring plans will allow it
to cut its quarterly recurring operating cash burn (EBITDA) from approximately
$2.0 million in the Company's first quarter ended March 31, 2001 to a targeted
EBITDA positive position by the Company's first quarter of 2002.
Specifically, the company has made a number of aggressive moves, including:
-- Reduction of expenses and overhead, staffing reductions resulting in a
work force of approximately 50 employees. This represents a reduction
of approximately 60 percent from peek staffing levels in 2000.
-- Introduction of two new product lines, Global Messaging and High Speed
Wireless.
CYNET, Inc. is currently reviewing its operations, cost structure and
asset values, along with expenses that may be incurred during the execution of
the restructuring plan. A special charge will be required in its second
quarter ending June 30, 2001, to cover the asset revaluations and
restructurings costs. The company's management believes that with the
reduction in cost associated with the restructuring it will be in a position
to reach an important milestone of becoming EBITDA positive by first quarter
2002.
About CYNET
Headquartered in Houston, TX, CYNET, Inc. specializes in providing
convergent messaging technology that simplifies business communications such
as e-mail, fax and voice messaging. The company increases productivity for
its customers by providing customized solutions that integrate dialer and
messaging software, Internet applications and wireless tools. For more
information, visit CYNET's Web site at www.cynetinc.com or call
1 (800) 964-2963.
This press release may contain forward-looking statements with respect to
operations, assumptions, the financial condition and future performance of the
Company. Additional information on risk factors that could potentially have a
material impact on the Company's operations and financial position, as well as
risk factors relating to the management of the Company, is contained in the
Company's filings with the Securities and Exchange Commission.
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SOURCE CYNET, Inc.
-0- 05/22/2001
/CONTACT: investor relations Consultant, Ronald L. Garner,
877-788-1940, ron@equitilinkpr.com, for CYNET, Inc./
/Web site: cynetinc.com
(CYNE) |
