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Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT:
Michael Gonnerman, CFO
LeadingSide, Inc.
(617) 577-2892
[email protected]
www.leadingside.com
LEADINGSIDE ANNOUNCES STAFF REORGANIZATION AND REDUCTION;
PROVIDES PRELIMINARY FOURTH-QUARTER RESULTS
COMPANY IN ACTIVE DISCUSSIONS FOR FINANCING
CAMBRIDGE, MA, January 16, 2001 - LeadingSide, Inc. (OTCBB: LDSD), a provider of
e-business solutions, today announced a reorganization that will reduce its
workforce by approximately 50 percent, or 60 employees, in order to dramatically
lower expenses and streamline operations. The move is expected to result in an
annualized savings of $12 million to $15 million.
For the fourth quarter ended December 31, 2000, LeadingSide expects to announce
revenues in the range of $3.5 to $4 million and to report a net loss of $(0.38)
to $(0.40) per share. Actual results are expected to be released in late
February.
LeadingSide also announced today that it is in active discussions with a number
of strategic partners regarding interim financing arrangements while it
considers its options for the longer term. The Company said that existing cash
and proceeds from work for existing customers would not be sufficient to fund
operations beyond the end of January. It said that the options currently under
consideration include strategic partnering arrangements designed to give
LeadingSide access to solutions work generated by major software firms, but that
the Board of Directors is considering a variety of alternatives.
Stated David C. Mahoney, LeadingSide's chairman and chief executive officer,
"The outlook for continuing short-term weakness in the e-services market and the
resulting shortfall in our revenues and earnings called for aggressive action.
The reorganization and interim financing are important steps that are necessary
to enable us to continue to build a profitable enterprise
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based on our core competency - delivering knowledge-driven e-business solutions
to Global 2000 clients. We are optimistic that we will be able to conclude a
transaction that will give us the necessary breathing room; however, it is
critical that we see results in the near term."
ABOUT LEADINGSIDE, INC.
LeadingSide is an e-business solution provider that designs, develops and
deploys knowledge-driven solutions to Global 2000 companies in the financial
services, pharmaceuticals, telecommunications, media, high tech, and
professional services industries. The company's core strength lies in its
ability to create strategic e-business solutions that leverage the considerable
intellectual capital embedded in the terabytes of structured and unstructured
business content that companies create and access every day. The company is
headquartered in Cambridge, Massachusetts, with offices in New York, the United
Kingdom and Singapore. For more information, visit www.leadingside.com, or call
617.577.2400 (in the U.S.) or 44-(0)-1895-827200 (outside the U.S.).
Statements in this press release about the company's prospects, are forward-
looking statements based on assumptions that may not be realized for various
reasons. Important factors that could cause actual results to differ materially
from these statements include, but are not limited to: that the company may not
secure the additional financing or alternative transactions that it requires;
that it may not be able to convert its backlog (contracts signed, but not yet
executed) into revenues; that the lead time to finalize large engagements may be
longer than expected; that pending customer agreements on which the company has
begun work may not actually be finalized; that the headcount reductions
announced today may not leave the Company with sufficient staff to perform new
business that is developed; that the company may not be able to effectively
compete against larger, more established e-business solutions providers; and
that increases in various cost and expense categories may exceed management's
current expectations. Further information on these and other potential factors
that could affect the company's financial results are included in the company's
latest periodic filings (Forms 10-K, 10-Q, 8-K and prospectuses) with the
Securities and Exchange Commission.
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