NEW YORK, July 24, 2003 (PRIMEZONE) -- In a technology driven world, where businesses are looking to streamline their spending and maximize their efficiency, the Piscataway, New Jersey-based EasyLink Services Corporation (Nasdaq:EASY) specializes in offering services to businesses wishing to do just that, the company's Chairman, Gerald Gorman told www.wallst.net.
"A J.P. Morgan study suggested a while ago that U.S. businesses alone could save $180 billion per year by automating their business process," he said. His company specializes in "getting rid of the time and wastage and inaccuracy of people-based communications between the back offices of businesses." Gorman said companies like EasyLink are "enjoying a lot of popularity with Wall Street" recently. "It's an enormous market where we could create enormous value and efficiency with businesses doing business with other businesses."
Currently, EasyLink provides business solutions to more than 300 of the Fortune 500 companies, and more than 400 of the largest 500 businesses in the world, Gorman said. Although currently awaiting an approval from a Nasdaq National Market hearing for their listing, Gorman said the hearing wasn't a big concern for the company. "Our stock had been trading below the dollar price for a period of time," he said, giving the reason for the hearing. "However, many good companies, like ours, have been depressed below a dollar, and many have bounced back dramatically. Similarly, ours has bounced back, and we closed today at 1.79."
Gorman added, "One of the things that's been holding back (EasyLink's) stock is that we had about $80 or $90 million of debt that was creating uncertainty for our investors. We're successful in restructuring a good portion of that (roughly $67 million). We traded debt for equity, which increased our trading values."
The company is focused on improving their balance sheet, reducing their debt from roughly $175 million to around $18 million. They have also "increased quality by a factor of two or three times, and are focused on building strategic relationships and product lines that would be attractive to customers."
Last year, EasyLink, which has close to 20,000 business customers globally, earned more than $100 million in revenue, Gorman said. Looking ahead, Gorman said he is anticipating a "a debt free balance sheet, increasing the traction of the company's new products in the market place, and enjoying the resulting growth in revenue."
To hear the entire interview, visit www.wallst.net
About EasyLink Services Corporation
EasyLink Services Corporation, headquartered in Piscataway, New Jersey, is a leading global provider of services that power the exchange of information between enterprises, their trading communities, and their customers. EasyLink's networks facilitate transactions that are integral to the movement of money, materials, products, and people in the global economy, such as insurance claims, trade and travel confirmations, purchase orders, invoices, shipping notices and funds transfers, among many others.
About www.wallst.net
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