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EXHIBIT 99.1
EN POINTE TECHNOLOGIES ANNOUNCES NEW CORPORATE OPERATIONAL PLAN
Los Angeles, Calif., June 15, 2000 - En Pointe Technologies, Inc. (NASDAQ:
ENPT), today announced a realigned operating structure designed to streamline
the organization, reduce costs and expenses, and align resources to accelerate
the growth potential in En Pointe's core business. The new organizational
structure is intended to allow En Pointe to more aggressively manage its
expenses, improve its operating efficiencies and continue to leverage its
strategic information technology investments in its applications to support the
company's goals going-forward.
"We have made significant investments in our core business and integrated
enterprise applications," said Michael Shabazian, President of En Pointe. "The
realigned business model will allow the company to continue to enhance its
leadership role and reap the benefits of its infrastructure investments. We will
continue our customer-centric commitment focused around a low-cost, value
delivery model for our core services and products. These critical actions
reflect our confidence in the company's growth strategy and demonstrate our
commitment to customers, shareholders, employees and suppliers to competitively
position the company as a market leader."
The new streamlined organization will focus its efforts on higher margin
services and products that are central to its key businesses and align En
Pointe's service and sales teams to its market strengths. This simpler
organization's charter is to market vital services and products aggressively to
customers in its key markets through the integrated field sales and service
organizations.
"This rebalancing is expected to improve the value proposition to the customers
of our core services and products. The top priorities guiding our realignment
are the rapid delivery of distinctive services and products for our loyal
business and governmental customers, and the use of our robust systems to carry
them into the future," added Shabazian. "We can best achieve these goals by
streamlining our organization and leveraging our strong and successful model and
investments in activities that are central to our core business."
The Company stated that it expects to take certain non-recurring charges in the
third quarter in connection with the realignment. These charges, the amounts of
which are not yet finalized, will cover expected costs including severance costs
attributable to workforce reduction, cancellation of contracts and leases, asset
write-offs and reserve replenishment. In aggregate, management estimates that
these charges will be in the range of $2 to 2.5 million.
"Our actions are designed to increase the structural efficiency of the Company.
In a period when many of En Pointe's competitors are floundering, these decisive
steps give us a solid platform from which to aggressively go forward towards
growth, increased customer satisfaction and
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shareholder value by effectively utilizing the En Pointe enhanced infrastructure
and low-cost model", noted Shabazian.
ABOUT EN POINTE TECHNOLOGIES, INC.
En Pointe Technologies, Inc. is a national business to business e-commerce
provider of IT products and value-added services, using proprietary and
non-proprietary software and systems to drop-ship MRO products to its
customers through an electronically linked network of the largest allied
distributors in the U.S. This software allows En Pointe to serve as an
electronic clearinghouse of computers and computer related products without
many of the risks and costs associated with maintaining inventory. En Pointe
offers its customers direct on-line access to 70% of the mainstream PC
distribution product, and will soon provide mainline office supplies,
furniture, equipment and facilities products. En Pointe Professional Services
offers "total solution" system consulting services such as: pre-sale
consulting, design, training, customization and integration. En Pointe also
has significant interests in firstsource corp., SupplyAccess, Inc., and
enRamp, Inc.
En Pointe has sales locations throughout the United States, as well as a
value-added ISO 9002 certified integration facility in Ontario, California.
Visit En Pointe on the Internet at www.enpointe.com. Visit firstsource corp.
on the Internet www.firstsource.com. Visit the SupplyAccess-TM- portal site
at www.supplyaccess.com. Visit enRamp at www.enramp.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve a number of
risks and uncertainties. These statements are based on current expectations and
the current economic environment. These statements are not guarantees of future
performance. Among the important factors that could cause actual results to
differ materially from management's projections, estimates and expectations
include, but are not limited to:
1. Changing economic influences in the industry including, but not limited to,
those related to the Internet and those related to distribution of
information technology and business products and services, and those
relating to the market's perception and evaluation of business-to-business
solutions providers
2. The development by competitors of new or superior delivery technologies, or
entry in the market by new competitors, or the loss of customers by the
company, or decline in demand for the products sold by the Company
3. Dependence on intellectual property rights
4. Delays in product development or disruptions in the functioning of key
software.
5. The company's and its subsidiaries' dependence on key personnel, and
potential influence by executive officers and principal stockholders
6. Any delay in execution of the company's and its subsidiaries' system
development or realignment or financing plans
7. Planned or unplanned changes in the quantity and/or quality of the
manufacturers and suppliers available for the company's and its
subsidiaries' products
8. The actions of manufacturers and suppliers of the company's and its
subsidiaries' products
9. Changes in the costs or availability of products
10. General business conditions in the economy and other factors referred to in
the company's Securities and Exchange Commission filings.
All trademarks and service marks are the property of their respective owners.
CONTACT:
Javed Latif, 310-725-5212 [email protected]
Jacob Stettin, 310-725-9773 [email protected]
