San Jose, CA - September 6, 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, today announced that effective October 1, 2001, all officers and corporate vice presidents of the company will forego 10% of their salaries to help the company in its effort to reestablish profitability. Additionally, the company announced all other US based employees would undergo a 5% salary reduction effective January 1, 2002. The Company anticipates annual savings of $1 million once all pay reductions have been implemented and expects to see the full financial benefit of the salary reductions in its third fiscal quarter of 2002.
The Company also announced its board of directors approved a proposal to offer its employees, officers and directors the opportunity to cancel stock options granted to them between September 1999 and June 2001 for an equal number of new options to be granted in the future, on a date more than six months after the date of cancellation of the original options. The Company's board determined that existing options eligible under the terms of the proposal no longer have sufficient value to motivate and retain the optionholders.
The new options will be granted six months and two days following the close of the tender offer and will be priced at the closing market price on that date. Additionally, the replacement grants will have the same terms, vesting start date and vesting schedule as those cancelled. In order to receive the new options, the employees must remain employed by the company until the new grant date. The number of options eligible to be cancelled number approximately 1.42 million shares with a weighted average price of $10.01. As of July 31, 2001, Pumatech had approximately 44.5 million shares issued and outstanding option grants totaling 6.7 million shares.
Pumatech will be filing a tender offer document with the Securities and Exchange Commission (SEC) that provides additional information concerning the stock option exchange and supplemental option grant program. The terms and conditions of the program are subject to change prior to or during the offering period.
About Pumatech
Pumatech, Inc. (NASDAQ: PUMA) provides organizations with a comprehensive suite of enterprise-level software products and services that deliver highly relevant information - wherever and whenever it's needed. The Company's portfolio makes Pumatech a single resource, providing the infrastructure necessary to expand the boundaries of information. Organizations can choose to use Pumatech's ready-made enterprise offerings, or they can leverage Pumatech's professional services team to create custom solutions built upon Pumatech's core enterprise platform. Pumatech's customer and strategic partner base includes Global 2000 companies such as Siebel, Oracle, Yahoo!, NTT DoCoMo, Boeing, CNET and General Motors. The Company has headquarters in Silicon Valley, Tokyo and London. Pumatech offers more information on its products and services at www.pumatech.com.
The forward-looking statements above in this news release, including statements related to savings expected to be realized as a result of the implementation of salary reductions and the timing and likelihood of anticipated return to profitability are forward looking statements based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially include but are not limited to, the accounting treatment of the option exchange program; changes in the trading price of Pumatech common stock during the program and in the period between the cancellation of old options and the issuance of new options under the program; corporate developments affecting Pumatech between the cancellation of old options and the issuance of new options under the program; other factors affecting our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; general economic conditions and specific conditions in the markets we address, as well as uncertainties related to the effect of continued weakness of general economic factors on the overall demand for our products and services, including the timing of market adoption of wireless computing devices, the timely introduction, availability and acceptance of new products and upgrades, the impact of competitive products and pricing, consummation of binding agreements with prospective business partners, as well as additional risk factors, as discussed in the "Risk Factors" section of Pumatech's Annual Report on Form 10-K for the year ended July 31, 2000 and Pumatech's quarterly reports filed from time to time with the U.S. Securities and Exchange Commission. Pumatech disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
Additional Information and Where to Find It
Pumatech expects to file a Tender Offer Statement on Schedule TO with the Securities and Exchange Commission and, when the offer commences, to provide Pumatech option holders with an Offer to Exchange, Summary Term Sheet and Letter of Transmittal containing information about the stock option exchange and supplemental option grant program. Investors and option holders are urged to read the Schedule TO, the Offer to Exchange, the Summary Term Sheet and the Letter of Transmittal carefully when they become available. The Schedule TO, the Offer to Exchange, the Summary Term Sheet and the Letter of Transmittal will contain important information about Pumatech, the stock option exchange and supplemental option grant program, and related matters. After the Schedule TO and exhibits are filed, investors and option holders will be able to obtain free copies of these documents on the Internet through the Website maintained by the SEC at www.sec.gov. Free copies of these documents may also be obtained from Pumatech by request through the Investor Information section of Pumatech's Website at www.pumatech.com/investor or by mail to Pumatech, Inc., 2550 North First Street, Suite 500, San Jose, California 95131, attention: Investor Relations, telephone: (408) 321-7650.
In addition to the Schedule TO, Offer to Exchange, Summary Term Sheet and Letter of Transmittal, Pumatech files annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by Pumatech at the SEC public reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549, or at any of the SEC's other public reference rooms in New York, New York and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. Pumatech's filings with the SEC are also available to the public from commercial document-retrieval services and at the Website maintained by the SEC at www.sec.gov.
Pumatech and the Pumatech logo are trademarks of Pumatech, Inc., that may be registered in certain jurisdictions. Intellisync.com is a servicemark of Pumatech, Inc. All other product and company names may be trademarks of their respective owners.