MALMO, Sweden, April 10, 2003 (PRIMEZONE) -- Telelogic (Other OTC:TGIAF) (Stockholm Exchange: TLOG), the leading global provider of solutions for advanced systems and software development, today announced that it is continuing to experience a soft market due to the current global economic climate. In addition, the uncertainty caused by the situation in Iraq has further delayed customers' investment decisions. This has impacted Telelogic's revenues for the quarter ending March 31, which are expected to be in the range of 215-225 MSEK. A weaker dollar has also had a negative effect compared with the same period last year. Cost reductions continued during Q1 and earnings before taxes are expected to be between -25 to -30 MSEK.
One step in the rightsizing of operations to match market conditions is the decision to further reduce costs. This includes the decision to concentrate Tau development to one location, which among other things will result in the closure of the development site in Toulouse, France. In addition Telelogic will restructure the European sales organization during the second quarter. No changes will be made to the sales organizations in the US and Asia, as they have continued to show good profitability. Sales of the DOORS product line continue to be strong and no reductions are planned within that part of the organization. The above measures will affect approximately 100 employees in Europe and will in the long term reduce costs by approximately 30 MSEK per quarter. The costs for restructuring will be reported on a continual basis in Telelogic's financial reports.
"The underlying demand for tools that help customers develop advanced systems and software more quickly and efficiently with fewer resources has not diminished. The need for development tools is increasing in line with companies' greater demands for rationalizations and more efficient development processes. It is however inevitable that Telelogic will also be negatively affected by the current soft investment climate," said Anders Lidbeck, President and CEO, Telelogic. "The cost adaptations we have made during the first quarter of this year, and will continue to do during the second quarter, should be seen against our commitment to reach the set profitability targets for 2003," Lidbeck concluded.
Telelogic will announce its final first quarter results on Wednesday, April 23, 2003. CEO Anders Lidbeck will hold a presentation for analysts and investors in Stockholm at 10.00 CET on April 23 at Nordic Sea Hotel in Stockholm. Interested parties may also listen in to the presentation via telephone and a webinar. For further details, please refer to Telelogic's homepage, www.telelogic.com before the report date.
About Telelogic
Founded in 1983, Telelogic(R) is the leading global provider of solutions for advanced systems and software development. The company's integrated best-in-class software tools, supported by professional services, enable companies to automate their entire development lifecycle, resulting in improved quality and predictability with reduced time-to-market and overall costs. To ensure interoperability with third-party tools, Telelogic's products are built on an open architecture and standardized languages. As an industry leader and technology visionary, Telelogic is actively involved in shaping the future of advanced systems and software development by participating in industry organizations like 3GPP, ETSI, INCOSE, ITU-T, MOST, OMG and others.
Headquartered in Malmo, Sweden with U.S. headquarters in Irvine, California, Telelogic has offices in 17 countries worldwide. Customers include Alcatel, BAE SYSTEMS, BMW, Boeing, DaimlerChrysler, Deutsche Bank, Ericsson, General Motors, Lockheed Martin, Motorola, NEC, Nokia, Philips, Siemens and Thales. For more information, please visit www.telelogic.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/2003/04/10/20030410BIT01210/wkr0001.pdf