| [May 13, 2005] |
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Eagle Broadband Announces Restructuring to Accelerate Revenue Growth
HOUSTON --(Business Wire)-- May 13, 2005 -- New Structure to Reduce Costs, Increase Sales Coverage, Improve Operating Efficiencies & Position Company to Profit from Key Revenue Opportunities
Eagle Broadband (AMEX:EAG), a leading provider of broadband, Internet protocol (IP) and communications technology and services, today announced the company has implemented a comprehensive corporate restructuring designed to reduce costs, focus company resources to drive top-line growth and position the company to be a leaner, more responsive competitor in the broadband, IP and communications markets.
The new corporate structure aligns the company's resources to better capitalize on revenue opportunities for the company's IPTV, IP set top boxes, satellite communications and broadband services offerings. The restructuring plan includes the formation of three main operating divisions:
-- IPTV Solutions Division - focused on the company's IPTVComplete(TM) and Media Pro IP set top box product offerings.
-- Satellite Communications Division - includes the SatMAX(TM) non-line-of-sight satellite communications technology.
-- Broadband Services Division - focused on offering broadband, security and managed services.
"After a thorough assessment of Eagle's businesses, I am implementing a new organizational structure and operational plan that better positions the company and shifts our focus to higher growth revenue and profit opportunities," said Dave Micek, President and CEO, Eagle Broadband. "The actions we have taken are designed to make Eagle Broadband more efficient, more competitive and enable us to better serve customers and improve returns for our shareholders. The new organization will allow us to fully leverage our broadband and communications expertise and capabilities and seize the first to market advantages with our IPTVComplete(TM) video solution, high definition Media Pro IP set top box and SatMAX(TM) satellite communications technologies. I am determined to transform our industry leading products, technology and talent into consistent, long-term revenue growth."
Additional elements of the restructuring initiatives include:
-- An overall 16% reduction in payroll-related expenses beginning in the current, third quarter fiscal 2005 (the company will incur a non-material, one-time charge in the current quarter to cover the costs of the restructuring).
-- Hiring of additional experienced sales staff and providing them with the tools, resources and sales/marketing programs needed to accelerate revenue growth.
-- Realigning staff and resources to focus on revenue generating activities, maximize efficiencies and better serve customers and partners.
-- Reducing additional costs by lowering operational overhead and carefully controlling expenditures.
-- Consolidation of certain functions within the divisions to eliminate overlap and further reduce costs.
-- Implementation of new financial and management systems and processes to enhance business controls.
Micek continued, "I want to make it clear that my number one focus for the company is growing revenues and driving the company towards profitability. I believe we now have the products and are executing a focused plan needed to accomplish this. We are cutting costs and rebalancing our resources to enable a more sales-focused organization that enables us to capitalize on our first mover advantage in the high growth markets we are targeting. We have won initial contracts across each of our main operating divisions, further validating the value of our core offerings. I am excited about the company's prospects and am fully committed to realizing the company's full potential for the benefit of our customers and shareholders."
About Eagle Broadband
Eagle Broadband is a leading provider of broadband, Internet Protocol (IP) and communications technology and services that create new revenue opportunities for broadband providers and enhance communications for government, military and enterprise customers. Eagle leverages years of proven experience delivering advanced, IP-based broadband bundled services to provide service provider partners with a way to deliver next generation entertainment, communications and security services to their subscribers. The company's product offerings include IPTVComplete(TM), the fastest, lowest cost way for broadband providers to deliver the most competitive IP video services, the Media Pro line of HDTV-ready IP set-top boxes that enable broadband providers and hotel operators to maximize revenues by delivering state-of-the-art, interactive entertainment services and the SatMAX(TM) satellite communications system that provides government, military, homeland security and enterprise customers with reliable, non-line-of-sight, voice and data communications from any location on Earth. The company is headquartered in Houston, Texas. For more information, please visit www.eaglebroadband.com or call 281-538-6000. (EAGG)
Forward-looking statements in this release regarding Eagle Broadband, Inc., are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.
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