[June 11, 2018] |
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Monotype Announces Efficiency Program
Monotype Imaging (News - Alert) Holdings Inc. (Nasdaq: TYPE) today announced an
efficiency program estimated to yield up to approximately $8 million in
annualized savings. The changes continue the alignment of operational
resources with Monotype's market opportunities and long-term strategic
initiatives.
The program is expected to be substantially complete by the end of 2018
and will be fully reflected in the Company's full-year 2019 results. The
main drivers of the efficiency gains are:
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A focus on products and markets that are most impactful to creative
professional and OEM customers.
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Winding down products for which there is little customer demand,
including Swyft and the Monotype Library Subscription for individuals,
and redirecting investments to products that are resonating the
strongest with customers.
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A geographic footprint refinement that aligns with go-to-market
strategy and optimizes resources in regional centers of excellence.
"We remain focused on creating long-term value by expanding
profitability margins through both revenue conversion and driving
efficiency across the organization," said Scott Landers, president and
CEO of Monotype. "We're committed to taking a market-based approach to
our investments and believe that these actions allow us to focus on
those products that are resonating the most with our customers and
deploy resources to the greatest market opportunities."
In connection with the program, Monotype expects to incur $6.0 to $8.0
million of non-recurring costs, of which $1.0 to $2.0 million will be
non-cash charges. These costs will primarily be recorded in the second
quarter, however, the estimated cash costs of $5.0 to $6.0 million are
expected to be paid throughout 2018 and the first half of 2019. The
variability in the estimate of the non-recurring cost is primarily
driven by ongoing severance and facility consolidation negotiations. In
addition to the impact on operating expenses, these non-recurring costs
are expected to have a $(0.05 to $(0.07) effect on the Company's
second-quarter GAAP earnings per diluted share. Notwithstanding the
impact of these non-recurring charges, the Company is reiterating its
previously reported second-quarter guidance, and will provide an update
of full-year 2018 financial guidance on its earnings call for the
quarter ending June 30, 2018.
Forward-Looking Statements This release may contain
forward-looking statements including those related to anticipated
savings, costs and expenses resulting from the Company's restructuring
actions, anticipated changes to the company's workforce and changes to
the company's product portfolio that involve risks and uncertainties
that could cause the company's actual results to differ materially.
Factors that might cause or contribute to such differences include, but
are not limited to: risks associated with whether the company's cost
savings and expenses are as predicted, potential disruptions to the
company's business operations as a result of the restructuring inclusive
of the anticipated reduction of workforce and consolidation of
facilities, and risks associated with the wind down of certain of the
company's products. Additional disclosure regarding these and other
risks faced by the company is available in the company's public filings
with the Securities and Exchange Commission, including the risk factors
included in the company's Annual Report on Form 10-K for the year ended
December 31, 2017 and subsequent filings. The forward-looking financial
information set forth in this release reflects estimates based on
information available at this time. These amounts could differ from
actual reported amounts to be included in the company's future earnings
releases and public filings. While the company may elect to update
forward-looking statements at some point in the future, the company
specifically disclaims any obligation to do so, even if an estimate
changes.
About Monotype Monotype provides the design assets,
technology and expertise that help create beautiful, authentic and
impactful brands that customers will engage with and value, wherever
they experience the brand, now and in the future. Further information is
available at www.monotype.com.
Follow Monotype on Twitter,
Instagram
and LinkedIn.
Monotype is a trademark of Monotype Imaging Inc. registered in the U.S.
Patent and Trademark Office and may be registered in certain
jurisdictions. ©2018 Monotype Imaging Holdings Inc. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180611005301/en/
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