iPrint Restructures: Farros Steps Away as CEO, Reduces Employee Size by 30%
Press release from the issuing company
SANTA CLARA, Calif., Jan 3, 2002 -- iPrint Technologies announced that it has affirmed Q4 2001 revenue and EPS guidance and is restructuring the company's operations following the completion of its recent merger with Wood Associates.
"We are comfortable that we will meet or beat the guidance provided in our Q3 2001 conference call of $8 million revenue and loss per share of $0.11 based on an expected weighted average of approximately 45 million shares,'' stated Monte Wood, President and CEO of iPrint. "In addition, we are continuing to restructure our company with the objective of reducing overall headcount by 30% and the executive team by 50%. With the completion of our recent merger we are focusing all efforts on initiatives that we believe will yield immediate returns.''
iPrint's merger with Wood Associates was completed on November 1, 2001. While aggressively cutting the combined work force, the company is also reducing overall operating expenses, including restructuring or terminating a number of building leases.
In addition, as part of the company's efforts to reduce the size of its executive team, iPrint Chairman Royal P. Farros will step away from day-to-day operations. In his role as Chairman, Farros will continue to focus on corporate positioning within the investment community and future M&A activities. "With our strong desire to achieve profitability, now is the right time for me to come off of payroll, help reduce the size of our executive team, and continue contributing in my role as Chairman of the Board,'' said Farros. "I'm excited to see the benefits of the merger start taking shape for our investors.''
Farros has also agreed to repay the company approximately $721,000 with respect to a note that was not otherwise due until 2005. In connection with the repayment, the company also expects to repurchase from Farros approximately 278,000 shares at a purchase price equal to 90% of current market value. The shares represent approximately 3% of Farros' holdings. Farros' loan and the share repurchase relate to option-oriented alternative minimum tax issues that arose in 2000.
The company also announced that CFO Robyn Cerutti, one of the key architects of the merger, is leaving and will transition her position to interim CFO, David Seltzer. Cerutti has been successful in executing the company's restructuring efforts over the past year, as well as negotiating the merger with Wood Associates in an effort to position the company for success in the enterprise market. "The last year of piecing together this merger has been exhilarating and I look forward to the company entering into the next chapter of its business growth,'' said Cerutti.
David Seltzer is a 16-year financial industry veteran with experience in merger integration situations. "David is a seasoned financial professional who has demonstrated exceptional skills in financial planning and operations,'' said Wood. "His merger expertise is exactly what iPrint needs to continue to move our business to the next level.''
While implementing aggressive cost cutting programs, the company is also transitioning Wood's corporate online marketing programs to iPrint's technology platform. "We believe we have the best sales organization in the industry and now we're teaming this with what we believe is the best technology,'' added Wood. "This not only gives us better control over cost and delivery of systems, but a competitive advantage in the marketplace.''
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