Basware is planning to launch a productivity programme
Basware Corporation, inside information, April 30, 2019 at 8:35 am EEST
Basware is planning to launch a productivity programme aimed at improving profitability and cashflow.
More than two thirds of Basware’s revenues are from the cloud. In the transition so far, the company’s focus has been primarily on cloud growth. As a more mature stage of the transformation process has been reached, Basware is planning to increase its focus on profitability and cashflow.
The productivity programme will focus on a number of areas including making professional services profitable, streamlining the product portfolio, R&D and production operations as well as corporate support functions.
The company has identified potential annual run rate net cost savings of approximately EUR 10 million in comparison to costs in the first quarter of 2019. Basware is exploring the possibility of making personnel reductions. Any labour negotiations will be executed in cooperation with the personnel and in compliance with local legal requirements. The number of employees that may be affected globally is up to 90. The upfront cash costs of the programme are expected to be approximately EUR 3.5 million.
Basware expects to reach positive EBIT in 2020 and positive free cashflow on a run rate basis by the end of 2020. Free cashflow is defined as EBITDA minus capitalizations, total debt service costs, tax and payment of lease liabilities, and excluding share-based compensation and any impact from acquisitions or disposals.
Basware’s previously communicated 2019 guidance and strategy are unchanged.
For more information, please contact:
Ben Selby, VP IR & Treasury, Basware Corporation
Tel. +358 50 305 8077, email@example.com
Basware (Nasdaq: BAS1V) is the global leader in providing networked source-to-pay solutions, e-invoicing and innovative financing services. Basware’s commerce and financing network connects businesses in over 100 countries and territories around the globe. As the largest open business network in the world, Basware provides scale and reach for organizations of all sizes, enabling them to grow their business and unlock value across their operations by simplifying and streamlining financial processes. Small and large companies around the world achieve significant cost savings, more flexible payment terms, greater efficiencies and closer relationships with their suppliers. Find out more at http://investors.basware.com/en.