, a leading provider of integration solutions, hosted application services and one of the first application infrastructure companies to provide software as a service, today (Jan 17) announced an 8 percent staff reduction and a re-emphasis on its professional services business.
The corporate realignment plan is designed to reduce operational costs and increase profitability by focusing on its core business of offering a full range of professional services. The company will capitalize on its experienced integration solutions talent by re-emphasizing its professional services business and continuing to grow its ASP business. Realigning the company’s resources also enables FutureLink to become true partners with its customers by formulating information technology (IT) solutions that meet their business critical application and infrastructure needs.
“Our goal is to improve the financial situation and market position of the company by the end of Q4 2001, and the best way to do that is to focus our attention and efforts on the things that made FutureLink successful from the beginning,” stated Howard E. Taylor, president and CEO. “This company was founded on the philosophy that our customers determine what they want from a professional services company and we deliver it. We will continue to do just that.”
Taylor announced that as a part of the company’s realignment plan it reduced its 660-person workforce by approximately eight percent. These reductions took place in North America and severance packages were offered to those workers directly affected. The staff reductions and resulting cost-savings in operating expenses are expected to position the company to reach EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) breakeven by end of Q4 2001. More than 70 percent of FutureLink’s revenue — $91.4 million as reported through the nine months ending September 30, 2000 — was derived from its professional services business.
“Improving the company’s cost structure and focusing on its core business will enable FutureLink to maintain its position as a leader in the industry. The FutureLink team possesses the expertise, flexibility and determination required to adjust to the needs of the market and our customers, and is dedicated to moving quickly and aggressively to make these improvements,” added Taylor.
The company delivers its products and services in partnership with several key firms, including Microsoft, Citrix Systems Inc., Compaq, EMC Corporation, Cisco Systems, Great Plains, Onyx and others. 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.