REDWOOD SHORES, CA -- 11/19/09 --
iPass Inc. (NASDAQ: IPAS), a leading
provider of enterprise mobility services, today announced a restructuring
plan in support of the company's focus on the evolution of its business,
driving its new technology platform and aligning its operating structure.
The restructuring is expected to reduce operating costs by approximately
$8.6 million on an annualized basis with anticipated savings in the fourth
quarter of 2009 estimated to be approximately $0.7 million. As part of
this restructuring, iPass has initiated a reduction in its employee base of
approximately 80 people from its total global workforce of approximately
455 people; approximately 56% of this headcount reduction is associated
with the company's restructuring of its offshore development facility in
Bangalore, India as iPass shifts the focus of its development efforts back
to the US.
The company expects to take a restructuring charge in the fourth quarter of
2009 of approximately $4.6 million associated with employee severance,
facilities costs and the termination of certain contracts.
"As we execute the transformation of iPass, and at the same time weather
the effect of the global recession, we are committed to investing in our
technology leadership and supporting our customers' success," said Evan
Kaplan, President and Chief Executive Officer of iPass. "With restructured
operations and the expected positive impact of our new technology platform,
we are confident we are taking the right steps to position iPass for
long-term success."
About iPass
iPass helps enterprises unify the management of remote and mobile
connectivity and devices. With iPass software and services, customers can
create easy-to-use broadband solutions for their mobile workers, home
offices and branch and retail locations, complete with device management,
security validation and unified billing. iPass offerings are powered by its
leading global virtual network, on-demand management platform, and
award-winning client software. The iPass global virtual network unifies
hundreds of wireless, broadband and dial-up providers in over 160
countries. Hundreds of Global 2000 companies rely on iPass services,
including Ford, Nokia, and Procter & Gamble. Founded in 1996, iPass is
headquartered in Redwood Shores, California, with offices throughout North
America, Europe and Asia. For more information, visit www.ipass.com.
Cautionary Information About Forward-Looking Statements
The statements in this press release regarding the amounts of expected
reduction in operating costs during the fourth quarter of 2009 and on
annual basis due to the restructuring, the amount of restructuring charge
to be recorded in the fourth quarter of 2009, the expected positive impact
of iPass' new technology platform and iPass' belief that it is taking the
right steps to position the company for long term success are
forward-looking statements. Actual results may differ materially from the
expectations contained in these statements due to a number of risks and
uncertainties, including the risk that expected cost savings may not be
fully realized due to unexpected reasons or events, the risk that
preliminary estimates of restructuring charges may differ materially from
the final charges determined in the final accounting for the fourth quarter
of 2009, the risk that iPass' new technology platform will not be perceived
by customers as having the benefit that iPass believes it has, as well as
other risks identified in iPass' Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission (the "SEC") on November 6, 2009,
and available at the SEC's Web site at www.sec.gov. iPass undertakes no
responsibility to update the information in this press release if any
forward-looking statement later turns out to be inaccurate.
NOTE: iPass® is a registered trademark of iPass Inc.
CONTACT:
iPass Investor Relations
ir@ipass.com
650-232-4317
