<PAGE>
EXHIBIT 99.1
PRESS RELEASE
INTRAWARE ANNOUNCES RESTRUCTURING AND BUSINESS REALIGNMENT
INTRAWARE CUTS PERSONNEL IN EFFORT TO REDUCE ANNUAL OPERATING EXPENSES BY
$20 MILLION
EMERYVILLE, Calif. -(BUSINESS WIRE)-Dec. 1, 2000-Intraware, Inc.
(Nasdaq:ITRA - NEWS), a leading provider of Internet-enabled information
technology (IT) management solutions, today announced several strategic and
organizational initiatives designed to reduce operating expenses and
accelerate the Company's achievement of profitability. In an effort to cut
costs and streamline operations the Company plans on reducing its workforce
to approximately 200 employees from 380 at the end of November.
Intraware will also consolidate its three Bay Area offices into two and
reduce the number of outside sales offices from eleven to seven. As a result
of these reductions, Intraware expects to reduce operating expenses by more
than $5 million per quarter, beginning in the fourth fiscal quarter ending
February 28, 2001.
NECESSARY REACTION TO TURBULENT MARKET ENVIRONMENT
The workforce reductions are effective immediately and affect all
departments of the organization. The layoffs will not affect service delivery
through existing partnerships and are not expected to impact service levels
for current and future customers. "This was a very difficult decision for the
board and the entire management team, but it was the right decision for the
long-term success of Intraware and will allow us to realize sustained cost
saving without comprising our ability to deliver IT management solutions to
our customers," said Peter Jackson, CEO of Intraware. "As we move towards
profitablity, we plan to continue to invest in the development of our core
technology and capitalize on our strong customer base of Fortune 1000
companies."
"The dramatic recent changes in the financial markets required that we
very carefully reevaluate our business plan," said Don Freed, CFO of
Intraware. "Although we were still committed to our original vision of
providing Internet-based IT management solutions to corporations, we couldn't
sustain significant losses in the process. We made the restructuring
decisions to ensure that we could survive in a turbulent market by
accelerating our efforts to become cash-flow positive."
FINANCIAL IMPACT OF RESTRUCTURING
The Company expects the restructuring to reduce operating expenses by at
least $20 million per year. The Company expects to take a restructuring
charge in the current fourth fiscal quarter. The restructuring charge will
encompass severance costs, expenses associated with discontinued operations
and other charges. The Company plans to provide more specific details
regarding the financial impact of the restructuring, including any charges,
during its regularly schedule investor conference call to discuss the
financial results for the third fiscal quarter ended November 30, 2000. The
investor conference call is expected to be held during the first week of
January 2001 and will be open to the public. Further information regarding
the investor conference call will be available on the company's web site at
www.intraware.com.
ABOUT INTRAWARE
Intraware, Inc. (Nasdaq:ITRA - NEWS) is a leading provider of
Internet-enabled information technology (IT) management solutions that simplify
the way companies manage their technology assets. The
<PAGE>
company provides a set of integrated software solutions and Internet-based
services that optimize the selection, purchase, distribution and management
of information technology. Intraware has provided its unique and innovative
IT management solutions to over 70% of Fortune 1000 companies and has formed
strategic alliances with industry leaders including Compaq Computer
Corporation, Hewlett-Packard Company, IBM Corporation, Oracle Corporation,
and iPlanet, a Sun-Netscape Alliance. Intraware's IT management solutions
power business-to-business technology providers including Documentum,
E.piphany and Interwoven. Intraware is located in Emeryville, Calif. and can
be reached by phone at 888/446-8729 or 510/597-4600 or via the Internet at
http://www.intraware.com.
FORWARD LOOKING STATEMENTS
The statements in this news release referring to Intraware's intention
that this restructuring will accelerate its transition to profitability, to
its expectation that the restructuring will enable Intraware to reduce
expenses by $5 million per quarter or $20 million per year, and to its
intention to take a restructuring charge in the fourth quarter and to include
certain items in that charge, and other statements in this release which are
not historical facts, may be deemed to be foward-looking statements involving
a number of risk factors and uncertainties. Factors that could cause actual
results to differ materially from those anticipated in this news release
include a failure by the company to generate sufficient gross profits and/or
manage its costs sufficiently to reach profitability; an unanticipated
increase in costs resulting from claims filed by terminated employees under
the Worker Adjustment and Retraining Notification (WARN) Act, or resulting
from other unanticipated circumstances; the company's failure to adequately
manage its working capital and/or maintain sufficient cash levels to satisfy
its liquidity needs; weaker than expected market acceptance of Intraware's
newly released services; objection by certain software vendors to Intraware's
electronic delivery of their software to their licensees; the introduction of
competitive services and products by other Web-based companies; the early
stage of development of the market in which Intraware operates and
susceptibility of this market to rapid shifts; reluctance by potential
customers to procure software online due to security and other concerns;
interruptions in Intraware's online services due to unanticipated usage
volumes or technical problems; and difficulties in attracting and retaining
qualified employees. Further information on potential factors that could
affect Intraware's financial results is included in Intraware's Form 10-K for
the 2000 fiscal year, and its Form 10-Q for the second quarter of its 2001
fiscal year, filed with the Securities and Exchange Commission (SEC). Copies
of this and other Intraware filings with the SEC are available from Intraware
without charge or online at
http://www.intraware.com/intraware/corporate/investor/index.html.
Note to Editors: Intraware is a registered trademark of Intraware, Inc. All
other company, product and service names mentioned herein may be trademarks of
their respective owners.
CONTACT:
Intraware, Inc.
Carole Sinclair, 510/597-4896
[email protected]
