Innodata Announces the Establishment of a Special Committee and Certain Related Actions
05 December 2017 - 8:15AM
YASTEST
NEW YORK -
December 4, 2017 - INNODATA INC. (NASDAQ: INOD) today
announced actions it is taking in light of the recent decline in
the Company's stock price and the Company's recent operating
performance.
The Company's Board has
established a special committee whose charge is to determine, with
the assistance of consultants, whether to reduce or sell certain of
its operations to fund other operations that may have greater
promise. The Board's nominating committee will review overall board
composition and the extent to which the skills and experience of
present company directors align with the current and emerging needs
of the business.
The Company is undertaking a
further round of $1 million or more in cost cuts, which will be in
addition to the $2 million in cost cuts announced last quarter. The
Board has determined in principle, that, for periods to be
designated, director fees (other than fees to the audit committee
chairperson) will be paid in restricted stock, and that 20% of the
salaries of the Chief Executive Officer and the Chief Operating
Officer will be paid in restricted stock.
O'Neil Nalavadi ceased to be the
Company's Chief Financial Officer effective December 1 and is no
longer employed by the Company. The Company wishes him well in his
future endeavors and thanks him for his years of service. Raj Jain,
Vice President of Finance since January 2012, has been appointed
principal financial officer.
About Innodata
Innodata (NASDAQ:
INOD) is a global digital services and solutions company.
Innodata's technology and services power leading information
products and online retail destinations around the world.
Innodata's solutions help prestigious enterprises harness the power
of digital data to re-imagine how they operate and drive
performance. Innodata serves publishers, media and information
companies, digital retailers, banks, insurance companies,
government agencies and many other industries.
Founded in 1988, Innodata
comprises a team of 4,000 diverse people in 8 countries who are
dedicated to delivering services and solutions that help the
world's businesses make better decisions.
Innodata honors include EContent
Magazine's EContent 100, KMWorld Magazine's 100 Companies That
Matter in Knowledge Management, the International Association of
Outsourcing Professionals' (IAOP) Global Outsourcing Top 100,
D&B India's Leading ITeS and BPO Companies and the Black Book
of Outsourcing's Top List of Leading Outsourcing Providers to the
Printing and Publishing Business.
Forward Looking
Statement
This release contains
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. The words "project," "head start," "believe," "expect,"
"should," "anticipate," "indicate," "point to," "forecast,"
"likely," "goals," "optimistic," "foster," "estimate" and other
similar expressions generally identify forward-looking statements,
which speak only as of their dates.
These forward-looking statements
are based largely on our current expectations and are subject to a
number of risks and uncertainties, including without limitation,
that contracts may be terminated by clients; projected or committed
volumes of work may not materialize; our Innodata Advanced Data
Solutions ("IADS") segment is a venture formed in 2011 that has
incurred losses since inception and has recorded impairment charges
for all of its fixed assets; we currently intend to continue to
invest in IADS; the primarily at-will nature of contracts with our
Digital Data Solutions clients and the ability of these clients to
reduce, delay or cancel projects; continuing Digital Data Solutions
segment revenue concentration in a limited number of clients;
continuing Digital Data Solutions segment reliance on project-based
work; inability to replace projects that are completed, canceled or
reduced; our dependency on content providers in our Media
Intelligence Solutions segment; difficulty in integrating and
deriving synergies from acquisitions, joint venture and strategic
investments; potential undiscovered liabilities of companies and
businesses that we may acquire; potential impairment of the
carrying value of goodwill and other acquired intangible assets of
companies and businesses that we acquire; depressed market
conditions; changes in external market factors; the ability and
willingness of our clients and prospective clients to execute
business plans which give rise to requirements for our services;
changes in our business or growth strategy; the emergence of new or
growing competitors; various other competitive and technological
factors; and other risks and uncertainties indicated from time to
time in our filings with the Securities and Exchange
Commission.
Our actual results could differ
materially from the results referred to in the forward-looking
statements. In light of these risks and uncertainties, there can be
no assurance that the results referred to in the forward-looking
statements will occur.
We undertake no obligation to
update or review any guidance or other forward-looking information,
whether as a result of new information, future developments or
otherwise.
Company
Contact
Raj Jain
Vice President
Innodata Inc.
rjain@innodata.com
(201) 371-8024
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Innodata Inc. via Globenewswire
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