Aspiro adjusts its revenue prognosis and carries through heavy cost savings
Aspiro adjusts its revenue prognosis and carries through heavy cost savings Aspiro's revenue prognosis for 2001 is adjusted from SEK 175-190 million to an expected revenue level of at least SEK 60 million. Aspiro plans to reduce costs by substantially reducing its staff. Aspiro's intention is to reach a positive result without any further external capital infusion. Because of the stagnation of the telecom world market together with the increased uncertainty regarding the development of the current business cycle, Aspiro adjusts earlier stated prognoses for its operations. The adjustments of the prognoses are due to several concurrent factors: · The Internet portals' decreased advertisement volumes, and hence decreased revenues, have resulted in a lower demand for SMS- traffic. · The mobile operators have not managed to increase the usage of mobile services in the rate expected. Hence Aspiro's income from revenue sharing deals have been delayed. · The sales process of Fleet Manager to transport- and logistics companies has shown to take longer time than expected. Further prognoses will not be officially published at present. Aspiro plans to carry through a cost saving programme with the following main issues: · A reduction of the staff with 60-70 people, which means a halving of the present workforce. · An overview of Aspiro's present offices which may result in one or more closures. Aspiro will immediatelly start consultations with the unions. The cost saving measures should give full effect on the result as of the fourth quarter of this year,. Aspiro's intention is to reach a positive result without any further external capital infusion. The point in time when Aspiro expects to reach a positive result is postponed from, as earlier stated, fourth quarter 2001 until some time during 2002. Due to Aspiro's adjustment of prognosis and cost saving programme, Lena Wittbjer, CEO of Aspiro, will arrange a telephone press conference with the press and stock market today at 11:30 am (CET). For those wishing to participate in the conference, please dial +46 8 500 53 663. Aspiro's interim report for January-June 2001 will be published on August 22nd. For more information, please contact: Lena Wittbjer, CEO, Aspiro AB, tel: +46 40 630 03 00 Stefan Lindquist, CFO, Aspiro AB, tel: +46 708 36 81 07 Helena Gynnerstedt, Director of Information, Aspiro AB, tel: +46 709 91 80 18 About Aspiro Aspiro offers mobile operators, portals, companies and organizations a wide range of attractive services designed to meet the individual's need for information, entertainment and communication via mobile media. The company's vision is to create the leading global department store for mobile services. Founded in 1998, Aspiro is today an important player in the global mobile Internet market. 130 people currently work for the company, which has offices in Sweden, Luxembourg and USA. Aspiro's business concept, organization and operations are based on many years of experience gained in the mobile telecommunications and IT sectors. For more information about Aspiro, please visit www.aspiro.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/06/20010806BIT00050/bit0001.doc http://www.waymaker.net/bitonline/2001/08/06/20010806BIT00050/bit0001.pdf