Phunware, Inc. (NASDAQ: PHUN) (the “Company”), the pioneer of
Location Based SaaS that offers the only fully integrated
enterprise cloud platform for mobile that enables brands to engage,
manage and monetize anyone anywhere, announced a series of
strategic cost saving measures designed to improve its financial
performance and to position it for sustainable, long-term success.
The Company expects to realize annual run-rate cost savings upwards
of $5.0 million.
As part of its strategic cost optimization efforts, the Company
has made the difficult but necessary decision to implement a
reduction in force, impacting approximately 33% of Phunware’s
workforce across all departments. This decision is not a reflection
on the dedication or performance of these team members, but rather
a strategic action to refocus the Company’s efforts on its most
promising revenue generating opportunities and ensure Phunware's
continued success in the rapidly evolving mobile technology
landscape.
"We deeply appreciate the contributions of all our employees to
get Phunware to where it is today, and this decision was not taken
lightly," said Russ Buyse, Chief Executive Officer of Phunware. "We
are providing support to those affected during this transition
period and we remain committed to treating everyone with respect
and dignity. Our focus now is to maximize growth opportunities by
concentrating our resources on speeding adoption of our location
based-platform in healthcare, hospitality, and beyond."
In addition to the workforce reduction, Phunware is implementing
several other cost-cutting measures to become a leaner and more
efficient company. These include streamlining operations, reducing
non-essential expenses, and optimizing use of existing resources to
further enhance efficiencies.
"We believe these strategic actions will significantly lower our
operating costs, improve our financial performance and ultimately
enhance shareholder value," said Troy Reisner, Chief Financial
Officer of Phunware. "While these decisions are challenging, they
are critical steps on our path to profitability and long-term
corporate success."
Phunware remains committed to its mission of helping enterprises
create category-defining mobile experiences and will continue to
serve its global customers with the same level of quality,
innovation, and dedication.
The Company will provide more detailed information about these
cost reduction measures on its upcoming Q2 2023 earnings call.
Safe Harbor Clause and Forward-Looking
Statements
This
press release includes forward-looking statements. All statements
other than statements of historical facts contained in this press
release, including statements regarding our future results of
operations and financial position, business strategy and plans, and
our objectives for future operations, are forward-looking
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“project,” “should,” “will,” “would” and similar expressions that
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identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. Future developments
affecting us may not be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) and other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements. These risks and uncertainties include, but are not
limited to, those factors described under the heading “Risk
Factors” in our filings with the Securities and Exchange Commission
(SEC), including our reports on Forms 10-K, 10-Q, 8-K and other
filings that we make with the SEC from time to time. Should one or
more of these risks or uncertainties materialize, or should any of
our assumptions prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. These risks and others described under
“Risk Factors” in our SEC filings may not be exhaustive.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial
condition and liquidity, and developments in the industry in which
we operate may differ materially from those made in or suggested by
the forward-looking statements contained in this press release. In
addition, even if our results or operations, financial condition
and liquidity, and developments in the industry in which we operate
are consistent with the forward-looking statements contained in
this press release, those results or developments may not be
indicative of results or developments in subsequent periods.
About Phunware, Inc.
Everything You Need to Succeed on Mobile — Transforming Digital
Human Experience
Phunware, Inc. (NASDAQ: PHUN), the pioneer of Location Based
SaaS that offers the only fully integrated enterprise cloud
platform for mobile that enables brands to engage, manage and
monetize anyone anywhere. Phunware’s Software Development Kits
(SDKs) include location-based services, mobile engagement, content
management, messaging, advertising, loyalty (PhunCoin &
PhunToken) and analytics, as well as a mobile application framework
of pre-integrated iOS and Android software modules for building
in-house or channel-based mobile application and vertical
solutions. Phunware helps the world’s most respected brands create
category-defining mobile experiences, with approximately one
billion active devices touching its platform each month when
operating at scale. For more information about how Phunware is
transforming the way consumers and brands interact with mobile in
the virtual and physical worlds, visit https://phunware.com and
follow @phunware on all social media
platforms.
Phunware PR & Media Inquiries:
Email: PRESS@phunware.com Phone: (512) 693-4199
Phunware Investor Relations:Matt Glover and
John YiGateway Investor RelationsEmail: PHUN@gatewayir.com Phone:
(949) 574-3860
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