Science & Technology
Science and Technology
Science and Technology
Fri, November 20, 2009
Thu, November 19, 2009 iPass Restructures Business to Increase Customer Focus, Drive New Technology Platform and Promote Efficiencies in Operations
REDWOOD SHORES, CA--(Marketwire - November 19, 2009) - iPass Inc. (
The restructuring is expected to reduce operating costs by approximately $8.6 million on an annualized basis with anticipated savings in the fourth quarter of 2009 estimated to be approximately $0.7 million. As part of this restructuring, iPass has initiated a reduction in its employee base of approximately 80 people from its total global workforce of approximately 455 people; approximately 56% of this headcount reduction is associated with the company's restructuring of its offshore development facility in Bangalore, India as iPass shifts the focus of its development efforts back to the US.
The company expects to take a restructuring charge in the fourth quarter of 2009 of approximately $4.6 million associated with employee severance, facilities costs and the termination of certain contracts.
"As we execute the transformation of iPass, and at the same time weather the effect of the global recession, we are committed to investing in our technology leadership and supporting our customers' success," said Evan Kaplan, President and Chief Executive Officer of iPass. "With restructured operations and the expected positive impact of our new technology platform, we are confident we are taking the right steps to position iPass for long-term success."
About iPass
iPass helps enterprises unify the management of remote and mobile connectivity and devices. With iPass software and services, customers can create easy-to-use broadband solutions for their mobile workers, home offices and branch and retail locations, complete with device management, security validation and unified billing. iPass offerings are powered by its leading global virtual network, on-demand management platform, and award-winning client software. The iPass global virtual network unifies hundreds of wireless, broadband and dial-up providers in over 160 countries. Hundreds of Global 2000 companies rely on iPass services, including Ford, Nokia, and Procter & Gamble. Founded in 1996, iPass is headquartered in Redwood Shores, California, with offices throughout North America, Europe and Asia. For more information, visit [ www.ipass.com ].
Cautionary Information About Forward-Looking Statements
The statements in this press release regarding the amounts of expected reduction in operating costs during the fourth quarter of 2009 and on annual basis due to the restructuring, the amount of restructuring charge to be recorded in the fourth quarter of 2009, the expected positive impact of iPass' new technology platform and iPass' belief that it is taking the right steps to position the company for long term success are forward-looking statements. Actual results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties, including the risk that expected cost savings may not be fully realized due to unexpected reasons or events, the risk that preliminary estimates of restructuring charges may differ materially from the final charges determined in the final accounting for the fourth quarter of 2009, the risk that iPass' new technology platform will not be perceived by customers as having the benefit that iPass believes it has, as well as other risks identified in iPass' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") on November 6, 2009, and available at the SEC's Web site at [ www.sec.gov ]. iPass undertakes no responsibility to update the information in this press release if any forward-looking statement later turns out to be inaccurate.
NOTE: iPass® is a registered trademark of iPass Inc.
