WOODLAND
HILLS, Calif., November 9, 1999 — Vertel® (Nasdaq: VRTL), a
leading global provider of management solutions for
telecommunications networks, today announced that it expects to
take a non-recurring charge of approximately $600,000 in the
fourth quarter of 1999 related to a restructuring the company
announced in late October.
“As we announced previously, we are
restructuring our operations to help make the company more
competitive and allow us to sustain our position in the
marketplace while continuing to invest in growth markets,” said
Gordon Almquist, Vice President of Finance and Administration and
Chief Financial Officer.
During the fourth quarter of 1999, the
company will reduce its workforce, move some key functions, such
as engineering of TMN products, offshore, and consolidate its U.S.
engineering function to Vertel’s San Diego facility. The
company believes that as a result of the restructuring it will
reduce expense levels by approximately $600,000 for the fourth
quarter. On a full quarter basis, the expense reductions are
projected to be approximately $1.25 million or $5.0 million on an
annualized basis.
“The most significant area of cost
reductions are centered in the area of product development, as we
transition our TMN development to a lower wage cost environment
offshore. Moving this function offshore also puts us closer
to the higher growth TMN markets and, since we already have an
established international presence, we expect that this transition
process will take only three to six months,” concluded Mr.
Almquist.
About Vertel Corporation
Vertel is a leading
global provider of carrier-grade, broadband Internet software
infrastructure and management solutions. Vertel offers a wide
range of technologies and applications, supporting end-to-end
network and service management with the highest quality of service
for network operations. Vertel’s solutions are deployed
worldwide by service providers, network operators, software
vendors, and systems integrators. Vertel also delivers turnkey
management applications that fit individual customer requirements
through its Professional Services organization. The company is
based in Woodland Hills, California and has sales offices
throughout the world. Contact Vertel on the World Wide Web at http://www.vertel.com.
“Safe Harbor” Statements under the
Private Securities Litigation Reform Act of 1995: Except for the
historical information presented, the matters discussed in this
news release are forward looking statements that involve risks and
uncertainties, including timely and successful development of
products and technologies; successful introduction and customer
acceptance of new and enhanced products and technologies in
existing and new markets; the possible development and
introduction of competitive products and new and alternative
technologies; pricing, currency and exchange risks; governmental
and regulatory developments affecting Vertel and its customers;
the ability to identify, conclude, and integrate acquisitions on a
timely basis; the ability to retain and attract key personnel; and
other risks detailed from time to time in public disclosure
filings with the U.S. Securities and Exchange Commission (SEC) by
Vertel, including, but not limited to, the Annual Report on Form
10-K for the year ended December 31, 1998 and the Quarterly Report
on Form 10-Q for the quarter ended June 30, 1999.
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