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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: February 23, 1999
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PLATINUM technology International, inc.
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(Exact Name of Registrant as Specified in Charter)
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Delaware 0-19058 36-3509662
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(State or Other Jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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1815 South Meyers Road, Oakbrook, Illinois 60181
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (630) 620-5000
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Item 5. Other Events.
On February 22, 1999, the Registrant issued the press release attached as
Exhibit 99.1 to announce its restructuring plan to streamline operations,
increase profitability, and deliver greater value to customers and stockholders.
The information contained in the press release is incorporated herein by
reference.
Item 7. Financial Statements, Pro Forma
Financial Information and Exhibits.
(c) Exhibits
99.1 Press Release dated February 22, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PLATINUM technology International, inc.
Dated: February 23, 1999 By: /s/ Larry S. Freedman
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Larry S. Freedman
Senior Vice President and General Counsel
EXHIBIT INDEX
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Exhibit No. Exhibit
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99.1 Press Release dated February 22, 1999
2
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For Press Inquiries For Investor Inquiries
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Karen Andre Maria McAuslan
PLATINUM technology PLATINUM technology
(630) 691-0649 (630) 691-0771
[email protected] [email protected]
PLATINUM technology Announces Operating Plan to Increase Margins,
Profitability and Shareholder Value
Company outlines plans for productivity improvement and earnings growth
OAKBROOK TERRACE, IL -- February 22, 1999 -- PLATINUM technology (NASDAQ: PLAT)
today outlined its restructuring plan to streamline operations, increase
profitability, and deliver greater value to customers and shareholders. This
consolidation plan, originally announced with 1998 fourth quarter financial
results, is expected to yield approximately $90 million in annual savings and
significantly increase operating margins. As a result of these actions, PLATINUM
expects to incur a one-time charge of approximately $90 to $110 million in the
first quarter of 1999.
Operationally, the company will:
. Streamline operations and reduce workforce by approximately 15 percent,
approximately 1,000 people
. Streamline product development into two major business units (previously five
business areas):
Enterprise Management and Application Lifecycle & Knowledge Management
. Increase efficiencies by consolidating offices close in proximity
. Realign resources to focus on areas that are most strategic to PLATINUM's
customers and core business
. Align the sales support and consulting resources to provide each customer
with a single point of contact and better support the field sales
organization and customers
. Focus on strengthening existing business, suspend acquisition
activity
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"With the actions we've outlined today, we expect to increase margins above our
original plan and to positively impact the enterprise value," said Andrew J.
Filipowski, PLATINUM technology's President and CEO. "This operating plan is
intended to enable us to fully leverage the strong technology and talent we have
in place in order to deliver sustainable value and increased profitability in
1999 and beyond."
Overall Product Strategy
The changes made today center around consolidation of investments and
redeployment of valuable resources to the lines of business and product and
service offerings most strategic to PLATINUM's customers and its business. The
company will focus heavily on supporting key areas such as DB2 solutions, the
historical foundation and strength of the company; suites such as PLATINUM
ProVision, a modular integrated solution for enterprise management, and PLATINUM
ADvantage, a complete solution for managing the application development
infrastructure; and end-to-end data warehousing products. These solutions enable
customers to build a strong IT infrastructure and also address customers'
emerging needs, such as knowledge management, Internet commerce, and ERP
management.
Consolidating Business Units
PLATINUM has consolidated five divisions into two core business units--
Enterprise Management and Application Lifecycle & Knowledge Management--to
streamline development, leverage product synergies, and better align with
customers' needs. According to a recent Harvard University study, as companies
become increasingly reliant upon IT to increase service levels and gain
competitive advantage, there are two critical factors companies must address in
order to survive:
. Driving operational efficiency by ensuring high-performance and availability
of the systems that run the business on a daily basis (Enterprise Management)
. Driving the business forward by adapting applications and leveraging
information (Application Lifecycle & Knowledge Management)
Global Consulting Organization
As indicated in the fourth quarter earnings announcement, PLATINUM has taken
aggressive actions to strengthen its Global Consulting Organization:
. Reduced consulting and training expenses to realign operations with current
revenue expectations
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. Reorganized the Global Consulting Organization to align closely with the
software business
. Integrated services sales into the worldwide product sales organization to
enable field sales to more effectively sell both products and services and to
leverage cross-selling opportunities
. Strengthened the management team by bringing on seasoned senior management
domestically and internationally, with particular experience in operations
"We are confident that streamlining our operations, restructuring our
organization and refining our product development strategies will yield a
stronger, more competitive and more profitable company," said Paul Humenansky,
COO of PLATINUM technology.
About PLATINUM technology International, inc.
PLATINUM technology International, inc., headquartered in Oakbrook Terrace,
Illinois, had 1998 revenues of $968 million. PLATINUM provides software and
services that help IT organizations manage and improve the IT infrastructure.
For information, visit www.platinum.com.
Cautionary Note Regarding Forward Looking Statements:
This press release contains certain "forward-looking statements," including
statements regarding the expected effects of PLATINUM's restructuring plan, that
reflect PLATINUM's expectations regarding its future growth, results of
operations, performance, and business prospects and opportunities. Words such as
"expects," "intends," "estimates," "believes," "anticipates," "plans" and
similar expressions have been used to identify these forward-looking statements,
but are not the exclusive means of identifying these statements. These
statements reflect PLATINUM's current beliefs and are based on information
currently available to PLATINUM. Accordingly, these statements are subject to
known and unknown risks, uncertainties and other factors that could cause
PLATINUM's actual growth, results, performance and business prospects and
opportunities including PLATINUM's cost savings and profitability increases from
the restructuring plan, to differ from those expressed in, or implied by, these
statements. These risks, uncertainties and other factors include PLATINUM's
ability to successfully implement its restructuring plan, PLATINUM's ability to
develop and market existing and acquired products for the IT infrastructure
market; PLATINUM's ability to successfully integrate its acquired products,
services and businesses; risks related to the Year 2000 problem; PLATINUM's
ability to adjust to changes in technology, customer preferences, enhanced
competition and new competitors in the IT infrastructure and professional
services markets; currency exchange rate fluctuations, collection of
receivables, compliance with foreign laws and other risks inherent in conducting
international business; risks associated with conducting a consulting services
business; the risk of damage claims and costs resulting from product defects;
general economic and business conditions, which may reduce or delay customers'
purchases of PLATINUM's products and services; charges and costs related to
acquisitions; and PLATINUM's ability to protect its proprietary software rights
from infringement or misappropriation, to maintain or enhance its relationships
with relational database vendors, and to attract and retain key employees.
PLATINUM is not obligated to update or revise these forward-looking statements
to reflect new events or changed circumstances.
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All PLATINUM technology International, inc. product names and product category
names are trademarks of PLATINUM technology International, inc. Other company
names and product names referenced herein may be trademarks or registered
trademarks of the respective corporation.
