Focus on profitable growth through long term integration plan of existing
LAVAL, QC, July 24 /CNW Telbec/ - 20-20 Technologies Inc, (TSX: TWT), the
world leader in 3D interior design and furniture manufacturing software, is
consolidating its worldwide operations following years of organic growth and
strategic acquisitions. This strategy has directly contributed in establishing
the company's unique position in terms of geographic presence, market share
and product offering.
"The deterioration of economic conditions fueled by the housing market
and related credit crisis in North America has affected our license sales.
Furthermore, the strength of the Canadian dollar has caused our expenses to
increase over the last 18 months," said Jean-François Grou, President and COO
of 20-20 Technologies. "Our successful geographic diversification, however,
means Europe and other international markets now represent nearly half of our
revenues, leaving 20-20 much less exposed to and affected by the volatility of
any single region's economic conditions and related exchange rates. Now is
certainly an appropriate time to be a truly global company" he added.
As announced in its June 11 2008 press release, 20-20 reduces its yearly
operating costs by $6.1 M in personnel costs, resulting in the abolition of
90 positions, the equivalent of approximately 13 per cent of its work force.
The Company continues to realign its non-personnel related expenses, in order
to reduce its total spending. It will also manage its cost structure
throughout 2009 so it remains relatively constant, while revenues continue to
increase, reestablishing its profitability to target levels and thus protect
its ability to invest and grow. These costs reductions will have their full
effect throughout 20-20's fiscal 2009 year. Management will continue to
closely monitor its business in each region, adapting and realigning the
organization as needed, to adjust to economic realities.
"Even in challenging market conditions, 20-20 continues to gain market
share and capture existing and new market opportunities. We are reviewing and
adjusting our sales strategies in each region to pursue these goals and fully
exploit our existing and evolving product portfolio, while leveraging our
teams' capabilities to better serve our extensive customer base and
prospective customers," said Jean Mignault, Co-Chairman of the Board and CEO
of 20-20 Technologies.
"Despite the headwinds we are experiencing, 20-20 continues to execute
upon its long term development plan while focusing on fully exploiting the
revenue potential of its currently available products. We are on track to
achieve the complete unification of our proprietary technologies. That in turn
will enable every player in the interior design industry to perform their
functions while accessing our world-class industry platform, creating
formidable efficiencies for our customers and further enhancing 20-20's
competitive position," added Mignault.
20-20 enjoys the top position in its market as the largest global
provider of vertical point-of-sale and manufacturing solutions for the
interior design industry - an extraordinary and successful track record due to
an unsurpassed group of employees. It is the eighth largest Canadian software
company and the only public company in its sector, well-positioned to grow on
About 20-20 Technologies Inc.
20-20 Technologies is the world's leading provider of computer-aided
design, business and manufacturing software solutions tailored for the
interior design and furniture industries. Dealers and retailers use its
desktop and Web-based products and solutions for the residential and
commercial markets. 20-20 offers a unique proprietary end-to-end solution,
integrating the entire breadth of functions in interior design. It provides a
bridge for data communication from the point-of-sale to manufacturing and
world-leading enterprise resource planning (ERP) systems, including
computer-aided engineering and plant floor automation software. Operating in
13 countries with more than 600 employees, 20-20 is a publicly traded company
(TWT) on the Toronto Stock Exchange (TSX). For more information, visit
Forward Looking Statements
Certain statements contained in this press release constitute
forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of future operating
results and economic performance of the Company are assumptions regarding
projected revenues and expenses. These assumptions, although considered
reasonable by the Company at the time of preparation, may prove to be
incorrect. Readers are cautioned that actual future operating results and
economic performance of the Company are subject to a number of risks and
uncertainties, including general economic, market and business conditions and
could differ materially from what is currently expected.
For more exhaustive information on these risks and uncertainties you
should refer to our most recently filed Annual Information Form which is
available at www.sedar.com. Forward-looking information contained in this
report is based on management's current estimates, expectations and
projections, which Management believes are reasonable as of the current date.
The reader should not place undue importance on forward-looking information
and should not rely upon this information as of any other date. While the
Company may elect to, it is under no obligation and does not undertake to
update this information at any particular time, unless required by applicable
For further information:
For further information: Media Relations: Jean Mignault, Chief Executive
Officer, 20-20 Technologies Inc., (514) 332-4110