LONGUEUIL, QC, March 17 /CNW Telbec/ - Mediagrif Interactive
Technologies Inc. ("Mediagrif" or the "Company") (TSX: MDF), a world-leading
developer of e-business networks and provider of complete e-business
solutions, today announced major initiatives aimed at increasing its overall
performance and efficiency.
During the current fiscal year, the Company implemented a new corporate
structure and proceeded with major changes in its top management. Today, the
company announces it will be significantly reducing operating expenses through
the reduction of headcount by approximately 15%, the implementation of
increased cost controls and the transfer of resources in lower cost
Recent performance was impacted by a changing competitive environment, a
focus on longer- term growth initiatives, and foreign exchange. Like many
other Canadian companies, Mediagrif was strongly affected by the steady rise
in the Canadian dollar. To illustrate this impact, the foreign exchange
variation since fiscal 2006 impacted fiscal 2008 revenues by more than
$5 million or $0.19 of EPS.
"The realignment of our priorities among our various business networks
and departments to offset the different factors that have impacted our
performance in the recent past is essential. The significant reduction of
operating expenses by the streamlining of our workforce and processes will
enable us to continue to build a solid and efficient organization and continue
to create value for our shareholders," commented Denis Gadbois, President and
CEO of Mediagrif.
The reorganization touches most of Mediagrif's lines of business and
corporate departments. As a result, we expect to see improved agility as well
as competitiveness. The cost of reorganization will have an impact on
fourth quarter results in fiscal 2008. However, the Company expects these
measures to positively impact its profitability in fiscal 2009.
About Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies Inc. (TSX: MDF) is a world-leading
operator of e-business networks and provider of complete e-business solutions.
Mediagrif's e-business networks allow buyers and sellers within specific
industries to source, purchase or sell products and to exchange documents more
efficiently using the Internet. Mediagrif operates 15 networks, including
industry leaders www.brokerforum.com, www.powersourceonline.com,
www.telecomfinders.com, www.globalwinespirits.com and www.polygon.net.
Mediagrif also owns MERX, www.merx.com, the exclusive provider of e-publishing
services to the Government of Canada, and is a leading provider of government
bid aggregation services and e-procurement services in the U.S. Headquartered
in Longueuil, Mediagrif has various offices in Canada, the U.S, China, India
and Dubai. For more information, please visit us at www.mediagrif.com or call
1 877 677-9088.
This press release contains certain forward-looking statements with
respect to the Company. These forward-looking statements, by their nature,
necessarily involve risks and uncertainties that could cause actual results to
differ materially from those contemplated by these forward-looking statements.
We consider the assumptions on which these forward-looking statements are
based to be reasonable, but caution the reader that these assumptions
regarding future events, many of which are beyond our control, may ultimately
prove to be incorrect since they are subject to risks and uncertainties that
affect us. We disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable securities legislation.
All amounts are in Canadian dollars.
For further information:
For further information: Mediagrif Interactive Technologies Inc.:
Catherine Allard, Chief Financial Officer, (450) 677-8797 ext. 2133,
firstname.lastname@example.org; Kathy Roberge, Director, Communications, (450) 677-8797
ext. 3014, email@example.com