Atlanta, Georgia – (The Hosting News) – October 18, 2005 – Web hosting provider, Interland, has announced the deployment of multiple strategic changes designed to improve its financial results, add transparency to its business and decrease costs. Changes include a reduction in personnel, a new fiscal year and a shift in the officer structure of the company.
According to Jeffrey M. Stibel, President and CEO of Interland, ”Since joining Interland in early August, it has been my goal to turn around the company, improve its financial position and increase shareholder value. We took a hard look at the business and determined that today’s strategic changes were necessary and prudent for the overall health of the company. The decision to re-size our employee base was extremely difficult, however it was needed to streamline operations and increase operating efficiencies.”
To improve costs and operating efficiencies, Interland has trimmed its employee base by approximately 38 percent, which includes the previously announced reduction of 139 employees from the sale of its dedicated server assets to Peer 1 Network. These changes will take place by the end of the calendar year and will result in cost savings moving forward. After giving effect to these reductions, Interland’s approximate employee count will stand at 280.
In addition, Interland will begin preparing its financial reports on a calendar year basis starting January 1, 2006. Interland intends to change its fiscal year from an August 31st year end, to a December 31st year end which the company believes will help increase transparency. Consequently, Interland anticipates filing a Form 10-Q report for the quarter ending November 30, 2005 (which would have been the first fiscal quarter under the old fiscal year) as well as an interim financial report for the Transition Period ending December 31, 2005.
Interland has also changed its corporate officer structure. Interland has reduced the number of executive officers from seven to four. The executive officers now include its President and Chief Executive Officer, Jeffrey M. Stibel; Chief Financial Officer, Gonzalo Troncoso; General Counsel, Jonathan Wilson; and Chief Operations Officer, Richard Pitrolo.
For further information, please refer to the Company’s Form 8-K or visit: www.interland.com.