EXHIBIT 99
COMPANY PRESS RELEASE
MICROGRAFX ANNOUNCES WORLDWIDE RESTRUCTURING OF BUSINESS
COMPANY TO REDUCE OPERATING EXPENSES IN LINE WITH CURRENT OPERATING EXPECTATIONS
ALLEN, Texas--(BUSINESS WIRE)--July 3, 2000--Micrografx Inc. (Nasdaq:MGXI -
NEWS), today announced that it has restructured its organization and reduced its
U.S. workforce in an effort to restore profitability to its operations. The
company also announced that it will incur charges in its fourth fiscal quarter
ending June 30, 2000, for other changes in its business operations. The total
amount of the charges and the future impact of the restructuring actions will be
reported in conjunction with the release of the company's fiscal fourth quarter
operating results, currently planned for mid-August.
The restructuring actions will result in a reduced operating cost structure
commencing immediately, offsetting seasonally weak international revenues in the
first fiscal quarter of the year.
After a thorough review by the company's management and Board of Directors, the
announced changes were made to provide a business model and an operating
environment necessary for the company to meet its future needs. The company said
that other actions have been initiated that will continue to reduce the scale of
the infrastructure to support a smaller, more decentralized organization that
focuses on its independent business units.
The company will consolidate its enterprise process management operations into
an independent business unit in its Portland, Oregon facility under the
direction of Ken Carraher, currently Micrografx Executive Vice President of
Development. The technical graphics operations will be consolidated into an
independent business unit, headquartered in the Annapolis, Maryland facility. It
will be managed on an interim basis by Doug Richard, Micrografx President and
Chief Executive Officer.
The personnel reductions occurred principally in the United States where
personnel now total 113 persons, down from 187. Most of the changes were made in
the company's Allen, Texas, headquarters and involved persons who were engaged
in centralized software development, administrative and technical support
activities. The company said these functions were either eliminated or will be
absorbed by personnel in the business units.
As previously disclosed in its public filings, Micrografx continues to examine
various financing methods to ensure that the capital resources of the company
are sufficient to meet its ongoing requirements. Such measures include the
potential sale of equity securities in one or more public or private
transactions, and/or the sale or spin-off of certain assets to third parties.
Even in light of the cost reductions already initiated, as management has
previously stated, if the company were to fail to acquire additional external
financing, it could result in severe operational difficulties. Such difficulties
could result in an additional reduction in the scope of operations or ultimately
in a forced reorganization or bankruptcy.
Management believes it will be successful in obtaining the necessary revenue
levels and/or additional funding necessary to operate the Company in the near
term, however, there can be no assurance that under its current conditions,
external funds will be available or, if available, will not potentially dilute
shareholders' interests or returns.
About Micrografx Inc.
Micrografx Inc. is a recognized global leader in enterprise graphics software.
The company focuses on providing corporations with intelligent graphic solutions
that help people visually communicate and analyze key corporate information,
processes and ideas to solve real-world business problems. Through the use of
Micrografx technical graphics technologies, clients can utilize their technical
illustrations in a powerful and cost-effective way to provide interactive
graphics to internal and external customers. Note to Investors: This release,
other than historical information, includes forward-looking statements with
respect to achieving corporate objectives, strategic direction, advancement of
enterprise business, and certain other matters. These statements are made under
the "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995 and involve risks and uncertainties which could cause actual results to
differ materially from those in the forward-looking statements, including but
not limited to the following: product development, product introductions,
licensing agreements, technological change, competition, international
operations, changes in distribution channels, seasonality, growth in the
enterprise solutions business of the Company, market demand and acceptance of
products, the impact of changing economic conditions, fluctuation in foreign
currency exchange rates, and others detailed in the Company's Annual Report on
Form 10-K, Quarterly Reports on Forms 10-Q and other Securities and Exchange
Commission filings. These filings can be obtained by contacting Micrografx
Investor Relations.
Contact:
Micrografx Inc., Allen
John Carradine, 214/495-4350
Email: [email protected]
