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Bitstream Reduces Staff by 20%, Pageflex Engineering Team Restructured

Press release from the issuing company

CAMBRIDGE, Mass.--Oct. 24, 2001-- Bitstream Inc. announced today that it has proactively adopted certain restructuring initiatives to help accelerate the date by which the company can achieve profitability. These initiatives include a voluntary reduction in executive salaries, a reduction in outside consulting and other operational expenses, and a reduction of its workforce by approximately 20% effective October 31, 2001. Estimated cost savings are expected to exceed $1,100,000 annually. The majority of the workforce reductions affect Bitstream's general and administrative functions, which support the company and all of its subsidiaries, and the engineering team of Bitstream's Pageflex subsidiary. The restructured Pageflex engineering team will focus on Pageflex's award-winning applications now that the underlying NuDoc composition engine is mature and the major development contract with Atex Media Solutions, Inc., is complete. "Pageflex's sales, marketing, and support teams will continue to work closely with current and prospective customers, and we remain confident in our ability to meet the needs of the markets which we serve,'' said Sang Lee, Vice President, Sales & Marketing, of Pageflex, Inc. "With our increased emphasis on developing applications and delivering new products to the marketplace, we believe we will be better positioned to grow Pageflex revenues in the future.'' "We believe that we have the resources necessary to generate short-term revenue for all of our products, as well as to successfully complete our current long-term development projects,'' stated Charles Ying, CEO of Bitstream Inc.