DICOM Group plc Business Update
25 January 2008 - 6:12PM
Business Wire
DICOM Group plc (�DICOM�), a leading provider of Intelligent
Capture & Exchange solutions, submits the following update on
its business activities. Current trading DICOM expects its results
for the six months ended 31 December 2007 to be in line with
expectations. The Company has achieved its stated target of double
digit revenue growth in constant currencies in its software
business with a higher than expected contribution from software
services offsetting lower growth in software licenses in the second
quarter. The results will be announced on 18 February 2008.
Strategic review On 5 November 2007, Reynolds Bish joined DICOM as
CEO. Since his arrival, Mr. Bish has conducted a thorough review of
the strategy, structure and branding at the company. Following this
review it is clear that certain additional measures are now needed
to accelerate progress with DICOM�s stated strategy of focusing on
the software license and services portion of its business. As a
result of Mr. Bish�s analysis, DICOM�s organizational structure
will be reorganized to better align and focus its resources. In the
past, most line and staff functions were decentralized and widely
distributed throughout the world, with both regional and country
managers acting as general managers and being responsible for all
of these functions and for revenue generation. With this
reorganization, all line and staff responsibilities will be
consolidated into vertically aligned, worldwide functions under
global managers reporting to Mr. Bish. The essential purpose is to
execute in a more consistent and cost effective manner and to focus
management efforts more clearly on revenue generation activities.
In addition, DICOM�s sales function will be reorganized to better
align and focus its resources. In the past, the sales function was
decentralized and widely distributed throughout the world, with
regional and country managers being responsible for selling all of
the company�s products. With this reorganization, the sales
function will be separated into three groups better aligned with
DICOM�s products, markets and customers, namely: (1) software and
solutions, (2) OEM software, including the market leading embedded
VRS technology, and (3) European hardware distribution business. To
further optimize this structure and improve sales productivity over
time, the company has initiated a search for an Executive Vice
President of Worldwide Field Operations to manage the sales
function on a global basis, who will be based in Irvine, California
and report to Mr. Bish. As part of these changes, Urs Niederberger,
DICOM�s Chief Operating Officer and an Executive Director, will
leave the company as of 15 February 2008 and stand down from the
Board of Directors immediately. The Board extends its thanks to Mr.
Niederberger for his valuable contributions over the past ten years
and wishes him well in his future endeavours. Brad Weller has been
appointed as General Counsel, and Company Secretary with immediate
effect, replacing Stefan Gaiser, who remains the CFO and an
Executive Director of the Company. Mr. Weller has had a very
successful career both working as an attorney at a law firm and as
an in-house attorney at a number of publicly-held technology
companies, including Captiva, where he worked for Mr. Bish as
General Counsel. Also as a result of this review, the Board is
proposing to change the name of the company to �Kofax plc�. There
has been confusion both internally and externally over the various
brands used by the company in the past, many of which have arisen
through acquisition. Among all DICOM brands and products, Kofax
clearly emerges as the brand with the highest awareness among
stakeholders on a worldwide basis, having been recognised as the
leading capture software for the past twenty years. Furthermore,
the respected products and innovations that have emerged from Kofax
most closely define the direction in which the company is now
heading. As a consequence of the corporate rebranding and
restructuring, DICOM will make approximately 50 redundancies, close
certain facilities and record an exceptional charge of GBP 3.5 to
GBP 3.8 million in the second half of financial year 2008. This is
expected to result in significant annual cost savings and allow the
Board to increase investment in the company�s software and
solutions business. A Notice of Meeting will be sent to
shareholders to convene an Extraordinary General Meeting at 11.00
am, 18 February 2008 at the offices of Landsbanki to seek
shareholder approval for the proposed name change. If shareholders
approve the new name, DICOM�s ticker symbol on the London Stock
Exchange is expected to change from �DCM� to �KFX� with effect from
19 February 2008. The ISIN number for the company�s shares would
remain unchanged.
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