LAS VEGAS, June 18, 2001 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today announced sweeping and significant changes in its strategy, senior management and employee base.
Richard L. Clemmer, chief executive officer, said, "Since my arrival at PurchasePro a month ago, the senior management team and I have been developing our plans for a systematic implementation of our vision and strategy to realize full customer benefits, focus our employee resources and return value to our shareholders by leading PurchasePro to the strong financial returns we believe we can achieve. After intensive discussions with senior management, we have developed and are announcing the initial actions that we believe will lead PurchasePro to profitability and return value to our shareholders."
Mr. Clemmer, who was named to the chief executive position earlier this month, said that the company today took four very specific actions:
-- A reduction in force of approximately 50 percent,
-- A realignment and streamlining of its senior management team,
-- The implementation of a highly structured cost control program;
and,
-- The focusing of our newly strengthened and highly experienced
sales team on our leading software products to increase revenues.
"Our actions will hone and re-purpose our senior management team and employee base, reducing it by approximately 50 percent to under 300 people," Mr. Clemmer stated.
"Earlier this month," he said, "we announced that Allen Winder had been appointed chief operating officer and executive vice president with responsibilities to bring together and strengthen the coordination of our technology, marketing and sales efforts. Under Mr. Winder's management we have significantly strengthened our sales force through the addition of seasoned management and executives from Ariba, J.D. Edwards and i2 Technologies.
"Effective today, along with Mr. Winder and myself, PurchasePro's senior management team comprises Jeff Anderson, senior vice president for strategic alliances, Chris Benyo, senior vice president of marketing and network services with responsibilities including marketing, network development, customer support and corporate communications and Dale Boeth, senior vice president of consulting services. This realignment of our senior management team will maximize our focus on customer service in software and network sales and network development.
"This realignment will provide better products and services to our customers. We are embarking on a specific network services initiative, focusing on the continued build out and population of our industry leading e-commerce network and related services. Also, we have created a new consulting services group that will concentrate on integration solutions and the custom development needs of our customers with our e-Source and e-Procurement products."
Mr. Clemmer pointed out that, "To achieve our goal of profitability, we've clarified our vision with focus and precision. PurchasePro is uniquely positioned to provide companies of all sizes with universal access to the world's largest commerce network.
Our strategic approach to realize that vision is the precise and rapid execution of:
-- Building and partnering to provide superior e- commerce
applications
-- Populating the PurchasePro commerce marketplace
-- Driving adoption of our solutions within our customer base
-- Educating the world of business, large and small, about our
solutions and e-Commerce through our supplier college.
"We will execute with sharp focus and diligence. PurchasePro presently has robust products that have the power to enhance business practices, a network of 155,000 unique businesses and the technology to provide businesses with a live e-commerce application in 45 days or less. These facts clearly separate us from our competitors and provide very clear long-term value to PurchasePro's customers. We will continue to leverage our products, enhancing them and maintaining our leadership position in the industry.
"Our most immediate task, with our vision and strategy in place, is clear: The rebuilding of PurchasePro's credibility and with it, the company's financial stability. In order to fully implement this approach to success and achieve maturity at as rapid a pace as possible, we must be nimble and dynamic. This will be a new PurchasePro organization, an organization that tirelessly drives the company toward achievement of its primary goal of profitability. We are confident of this strategic, highly structured approach and the team that will deliver it. Coupled with the voiced and continued support of our partners, we will succeed."
Mr. Clemmer also said, "We will issue guidance for the second quarter at a conference call and webcast scheduled for 9:00 AM on Tuesday, June 19, 2001."
PurchasePro also announced that Shawn McGhee, president, has resigned effective June 30, 2001 to accept another position. Mr. Clemmer said, "We will miss Shawn McGhee who has made a significant contribution to PurchasePro in his short tenure here. His strong focus and hard work were responsible for many of the positive changes the company has made."
PurchasePro said that it will hold a conference call to cover these events in more detail that will be simultaneously Webcast tomorrow, June 19, 2001 at 9 a.m. PDT. The Web cast may be accessed through www.purchasepro.com.
About PurchasePro
PurchasePro(r), www.purchasepro.com, a leader in business-to-business e-commerce, gives organizations of all sizes universal access to the one of the world's largest commerce networks. The PurchasePro(r) commerce network interconnects more than 155,000 buyers and suppliers and gives them the ability to connect effortlessly to each other. The network has produced hundreds of thousands of transactions, giving customers lasting value. PurchasePro(r) delivers total value of ownership through its e-Source reverse auction and strategic sourcing tool, its e-Procurement enterprise software purchasing tool and its e-MarketMaker solution.
This news release may include forward-looking statements, which are subject to the "Safe Harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks and uncertainties that can cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements represent only the views of certain members of management and are based on limited information available to us now, which is subject to change. We have no current plan to update these statements. Actual results may differ substantially from what we say today and no one should assume at a later date that the forward-looking statements provided herein are still valid. They speak only as of today.
For more information about these risks and uncertainties, see the SEC filings of PurchasePro Inc., including the section titled "Factors That May Affect Results" in its 10-K filing for the period ended December 31, 2000, and its 10-Q for the quarter ended March 31, 2001, which are available from the company on request and on the Internet at the SEC's Website, www.sec.gov.
Note: PurchasePro is a service mark of PurchasePro.com Inc. All other trademarks or registered trademarks are the property of their respective owners.