- Broad-based plan includes staff reductions as well as other cost
- Annualized operating expense savings of US$8 million expected
- Reducing total employee base by 6.5 percent
- Third quarter results to be released at the close of business on
November 4th, 2008
TORONTO, Oct. 20 /CNW/ - Softchoice Corp. (TSX: SO), a leading North
American provider of technology solutions and services, today announced a
series of cost-reduction initiatives following an extensive analysis of the
Company's existing operating structure, acquisition integration efforts, and
efficiencies. Softchoice is accelerating its efforts to enhance productivity
for today's challenging economic environment and to position itself for
"We have made tremendous progress integrating our recent acquisitions,
however, the effects of the rapid economic downturn make it essential we move
decisively to streamline our workforce to drive greater operational efficiency
and more fully capture the synergies available to us," said David MacDonald,
President and CEO of Softchoice. "Our acquisitions have given significant
growth potential by increasing our reach among larger, enterprise
organizations and allowing us to enhance our value through the design and
implementation of end-to-end technology solutions. The changes we've announced
will allow us to achieve profitable growth by realigning our internal
operations in support of customers and the continued execution of our strategy
- both during this period of economic uncertainty and beyond."
As part of these initiatives, Softchoice is realigning its technical
resources and leveraging its recent acquisitions to drive stronger solutions
delivery capabilities for customers across North America. This process
includes removing redundant management structures that were a consequence of
integrating the acquisitions made over the past year.
The operating expense savings include both non-workforce related items as
well as staff reductions. Approximately 6.5 percent of the company's workforce
is affected by the organizational realignment. The Company is providing
severance and career transition assistance to the employees directly affected
by these changes. As a result of the actions announced today, Softchoice
expects to generate operating expenses savings of approximately US$8 million
on an annualized basis.
"It is not easy to see our valued colleagues leave the Company. We want
to express our deep appreciation for their contributions and to wish them well
in the future," added Mr. MacDonald. "It is also important to state that we
remain focused on ensuring our customers receive the best service in the
industry. This includes accelerating the roll-out of our value-added solutions
and professional services capabilities across the United States and Canada."
Softchoice will incur charges of approximately US$2 million in the fourth
quarter of 2008, primarily associated with personnel-related severance costs.
Further information concerning savings, costs and business outlook will be
provided with the upcoming quarterly earnings release and investor conference
call. Softchoice will announce its third quarter results at the close of
business on November 4th, 2008.
Third Quarter Earnings Conference Call Details
Softchoice will hold a conference call to discuss its third-quarter
results at 11 a.m. ET on November 5th, 2008.
Dave MacDonald, Softchoice's President and CEO, and Anne Brace,
Softchoice's Chief Financial Officer, will host the call. The conference call
will begin with a brief presentation followed by a question-and-answer
To participate in the conference:
Local / International: 416-849-6185
North American Toll-Free: 866-443-4183
To listen to the call and view the Web presentation:
To ensure participation, please dial in at least 10 minutes prior to the
start of the conference at 11 a.m. ET.
For those unable to attend the call, a link will be made available on the
Softchoice website to an archived Web and audio version on November 6th, 2008.
As one of North America's leading providers of technology solutions and
services, Softchoice helps businesses and organizations of all sizes to
select, acquire and manage their software and hardware technology resources.
Softchoice offers a full range of capabilities, including face-to-face
consultations and IT asset management services designed to help customers save
time, money and risk in IT procurement. Softchoice currently has 958 employees
operating from 45 branch offices located in major cities across the U.S. and
Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the
trading symbol "SO." The Common Shares of Softchoice are not registered under
the U.S. Securities Act of 1933 and are not publicly traded in the United
This press release contains forward-looking statements that involve risks
and uncertainties. These forward-looking statements relate to, among other
things, operating expense savings, future realignment charges, and other
expectations, intentions and plans contained in this press release that are
not historical fact. When used in this press release, the words "anticipate,"
"expect", "will" and similar expressions generally identify forward-looking
statements. These statements reflect our current expectations and are subject
to a number of risks and uncertainties including, but not limited to, change
in technology and general market conditions, many of which are set out or
incorporated by reference in the Company's latest Annual Information Form. Due
to the many risks and uncertainties, Softchoice cannot assure that the
forward-looking statements contained in this press release will be realized.
For further information:
For further information: Anne Brace, Chief Financial Officer, Softchoice
Corporation, (416) 588-9986, firstname.lastname@example.org