Boston Communications Group, Inc. Announces Reduction in Workforce
11 April 2007 - 7:30AM
Business Wire
Boston Communications Group, Inc. (Nasdaq:BCGI), a leading provider
of solutions to mobile operators and MVNOs worldwide, today
announced that it will be decreasing its workforce by 93 persons,
or approximately 21 percent of the Company (about 30 percent of the
domestic workforce). Most of the employees affected by the
reduction are located at the Company�s headquarters in Bedford,
Massachusetts and work across all areas of the organization.
Implementation of the reductions will begin immediately and will be
completed in the next several weeks. The Company estimates that
severance costs related to the reduction in workforce will result
in a one-time charge of approximately $2 million in the second
quarter of fiscal 2007. This reduction in workforce is designed to
align the Company�s cost structure with the previously announced
expected decrease in revenue from the Company�s largest customer.
�This was a very difficult decision,� said Paul Tobin, the
Company�s acting president and chief executive officer, �but it was
an essential one given our current business environment. We believe
that a new streamlined operating structure will allow us to more
efficiently meet the needs of our current customers and also
explore other promising market opportunities.� About bcgi bcgi
delivers innovative products and services that enable mobile
operators and MVNOs worldwide to differentiate their offerings and
increase market penetration while reducing costs. Founded in 1988,
bcgi is a leader in identifying and addressing new market needs
with proven solutions, including prepaid and postpaid billing,
payments and access management. For more information, visit
www.bcgi.net. Cautionary Statement Regarding Forward-Looking
Statements This press release contains forward-looking statements
that involve risks and uncertainties, including statements
regarding the expected severance costs and future cost savings
related to the reduction in force. Such statements are based on
management�s current expectations and are subject to a number of
uncertainties and risks that could cause actual results to differ
materially from those described in the forward-looking statements.
Among the important factors that would cause actual results to
differ materially from those indicated by such forward-looking
statements are the finalization of the amount and terms of any
severance provided to terminated employees, and the finalization of
the accounting impact of the reduction in workforce, as well as the
other factors that may affect future operating results described in
the Company�s Form 10-Q for the three months ended March 31, 2006
filed with the Securities and Exchange Commission. The Company
undertakes no obligation to update any of the forward-looking
statements after the date of this press release.
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