Company to Announce Fiscal Fourth Quarter and Year-End Results on Conference Call Planned for August 30, 2001
San Jose, CA July 27, 2001 - Pumatech, Inc. (NASDAQ NM: PUMA), a leading provider of enterprise- level software products and services that deliver highly relevant information wherever and whenever it's needed, announced today it will reduce its workforce by an additional 55 employees to help accelerate its return to profitability. The workforce reduction, which will be implemented by the end of the Company's fourth fiscal quarter ending July 31, 2001, follows a 20% headcount reduction last fiscal quarter and is expected to bring the Company's worldwide workforce to approximately 215 full-time equivalent employees. Additionally, the Company plans to further consolidate its business facilities located in California and suspend its efforts on the release of its online service offering, Intellisync.comSM, in light of the apparent slowdown in the adoption of wireless technologies. These actions are expected to result in one-time charges related to severance and facility closing costs as well as quarterly operational cost savings yet to be determined.
Brad Rowe, president and CEO of Pumatech, stated, "The economic uncertainty surrounding Global IT spending mandates that companies serving the enterprise marketplace manage their assets well during this turbulent period. Pumatech is taking proactive steps to trim expenses in all areas that are not crucial to meeting its core business objectives in an effort to accelerate our return to profitability. For example, we are suspending our efforts on the release of our Intellisync.com service in light of the apparent slowdown in wireless adoption as well as the potentially costly customer acquisition costs associated with successfully launching a fee-based Internet services. This will not only allow Pumatech to reduce costs, but also to re-deploy those internal assets associated with the project to more profitable areas in line with our long-term strategies. We believe such prudent action will further strengthen Pumatech's leadership position in the global enterprise marketplace.
Pumatech's management expects to offer detail on the quarterly results as well as its outlook for the remainder of the calendar year during its regular quarterly earnings conference call on August 30, 2001. Details of the conference call are provided below.