MGI Announces Senior Management Changes; Completes Major Cost Reductions
Press release from the issuing company
TORONTO, ONT--May 23, 2001-- MGI (TSE:MGI) today announced senior management changes and completion of major cost reductions to position the Company for profitable growth. The announcement culminates business restructuring activities began in the fourth quarter ended January 31, 2001.
The Company named Rocco Rossi as its new President and Chief Operating Officer, a new position created to ensure optimal performance and achieve the Company's new operational objectives. Rocco assumes operating responsibility for all departments previously reporting to Anthony DeCristofaro, Chief Executive Officer. Prior to joining MGI, Rocco was Vice President, Interactive Media, and President, beer.com, at Labatt/Interbrew, Toronto; Vice President, Strategic Planning & New Media at The Toronto Star; and a Senior Consultant with the Boston Consulting Group. Rocco was recognized as one of the Global Internet Marketing Innovators of the Year by International Advertising Age magazine last year. Rocco received a Master of Arts degree from Princeton University in 1986.
The Company also appointed Ken MacKenzie as its new Chief Financial Officer. Prior to MGI, MacKenzie was Chief Operating Officer and CFO at DPS, a Markham, Ontario based company, which was acquired by Leitch Technology Corporation last fall. DPS was a TSE-listed multinational company that designed and manufactured hardware and software products used in creating and disseminating broadcast-quality video and audio content. Prior to joining DPS in April 1996, MacKenzie was a partner with Price Waterhouse. MacKenzie holds a Bachelor of Commerce degree from the University of Alberta and obtained his CA designation in 1978.
Uri Kozai, MGI's Director Video Development, was promoted to Vice President Engineering replacing Israel Ben-Ishai who left the Company in April. Prior to joining MGI last year, Kozai was Director Software Development and Software Architect at PRI Automation, Toronto, where he was responsible for the delivery of new software products utilizing distributed component architecture. Ihor Petelycky, General Manager Video Products, was named the Company's Chief Product Strategist, responsible for the Company's technology roadmap and leading the integration of video, photo, and server technologies. Paul Amlani, Vice President World Wide Sales, has assumed channel marketing responsibilities to derive greater ROI and synergies from the Company's sales and marketing initiatives.
The Company also announced that it has substantially completed major cost reductions previously discussed on March 29, 2001 when it first revealed it was reducing operating expenses by approximately 20 per cent. Under the cost restructuring plan, MGI will be reducing its workforce to 242 staff, eliminating 86 positions, consisting of employee terminations and attrition, and termination of contractors in the U.S. and Canada. These staff reductions are in addition to the reduction of 20 positions reported in the fourth quarter ended January 31, 2001 associated with consolidating the Company's image server operations to its corporate headquarters. Other expenditure reductions were implemented across all departments.
"MGI is firmly committed to meeting profitability expectations," said Anthony DeCristofaro, Chief Executive Officer. "We have taken decisive steps to reaching this goal and putting the Company on a more solid financial footing to realize profitable growth in the future. Our new organizational structure will allow us to focus on operational excellence while providing the opportunity to tackle strategic opportunities in the imaging field."
The Company will record a restructuring charge of approximately $3.5 million in the first quarter ended April 30, 2001. MGI will provide further details regarding its new operating plan at the time of the release of its first quarter financial results in mid June. The Company's Annual Meeting of Shareholders will be held on Thursday, June 28, 2001 at 5:00 pm at Stock Market Place, The Exchange Tower, 130 King Street West, Toronto.
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