Veteran ASP FutureLink Corp. today announced it will be consolidating operations and reducing staff to accelerate the integration of its acquisitions and expected time to achieve EBITDA breakeven.
Approximately 75 positions have been eliminated, leaving 650 employees worldwide. This initiative, which affects both corporate and branch office levels, is consistent with the company’s plan to integrate its seven acquired companies and will result in more efficient operations. As a result of these actions, FutureLink expects to realize annualized cost savings of approximately $12 million by the end of the fourth quarter 2000.
“We are increasingly focused on rapidly growing our core ASP business. We expect that these actions will consolidate our sales and delivery infrastructure and reduce corporate overhead,” said Phil Ladouceur, chairman and CEO of FutureLink. “The company will continue to market software as a service, whether from our customer’s data center or our own, leveraging the expertise of our server-based computing integration business.”
Additional details concerning the announced corporate realignment will be discussed in the company’s third quarter results conference call, scheduled for November 2, 2000.
FutureLink is one of the largest and most experienced ASPs worldwide. The company provides customers with subscription-based access to software applications from their data center or FutureLink’s. FutureLink, a founding member of the ASP Industry Consortium, markets its offerings through a network of channel partners, independent software vendors (ISVs), software resellers and systems integrators throughout the United States, Canada and the United Kingdom.
Beginning in 1995, FutureLink has been engaged in the research and development of application hosting and thin-client computing. Incorporated in Alberta, Canada in 1996, FutureLink has been publicly traded since January 1998. In October 1999, FutureLink finalized its acquisition of Micro Visions, of Irvine, California, the number one Citrix reseller and systems integrator in North America. Since that time, FutureLink has acquired several other leading Citrix Systems resellers and systems integrators, including: Async Technologies Inc. in Detroit, Michigan; Computer Networks Inc. in Pleasanton, California; KNS Holdings Limited in England; VSI Technology Solutions in Beltsville, Maryland; Madison Technologies in New York, New York; and Charon Systems Inc., in Toronto, Canada.
