Cost Savings Estimated at Greater Than $9 Million
SAN FRANCISCO, May 30 /PRNewswire/ -- MarketWatch.com, Inc. (Nasdaq: MKTW)
today announced plans to reduce its workforce and prolong its cost reduction
measures in response to the changing dynamics in the Internet advertising
market and the overall economy.
The Company is initiating a program which will result in an immediate
reduction of more than 15% of its workforce and will extend its current cost
containment program to further reduce discretionary spending in such areas as
marketing, travel and entertainment and contract services. The Company
estimates a savings of greater than $9 million, excluding a restructuring
charge to be incurred in the current quarter, from its operating budget
through the end of the year.
"Our focus is on maintaining MarketWatch.com as the number one financial
news and information source on the Internet while achieving our financial goal
of generating positive cash flow by the end of this year," said Larry Kramer,
MarketWatch.com Chairman and Chief Executive Officer. "With the slowdown in
advertising revenue and the uncertain economic outlook for the rest of the
year, we believe it is prudent to implement these additional cost reduction
measures."
"As painful as this process is, we believe that we will emerge stronger
and more agile to meet the challenges this market presents," added Kramer. "We
remain committed to the quality of our journalism and our well-managed
operations. We will continue to support our strategy to build our traditional
advertising revenues and to further diversify our revenue streams through
licensing and other media opportunities."
About MarketWatch.com, Inc.
MarketWatch.com, Inc., a leading financial media company, is the
number one financial news and information source on the Internet. Founded in
1997, MarketWatch.com operates three web sites: cbs.marketwatch.com,
bigcharts.com, and U.K.-based ftmarketwatch.com. In addition to offering
top-notch financial reporting and investment tools on its web sites,
MarketWatch.com licenses a wide array of content and tools in custom-designed
formats for brokerages and other online businesses. The Company also produces
the syndicated CBS MarketWatch Weekend program, airs financial reports over
CBS Network Television, and provides updates every 30 minutes on the
MarketWatch.com Radio Network. Editorial content from cbs.marketwatch.com is
distributed in major newspapers and wireless networks.
Notice Regarding Forward-Looking Statements
This media release contains forward-looking statements that involve risks
and uncertainties. MarketWatch.com's actual results may differ materially from
those anticipated in these forward-looking statements, which include
statements as to the Company's future positive cash flow, currently expected
cost savings from cost reduction initiatives and strategy to build traditional
advertising revenue and diversify revenues streams through licensing and other
media opportunities. Factors that might contribute to such differences
include, among others, the Company's ability to attract and retain advertisers
from industries other than the Internet related industries and the financial
industries; levels of renewals from licensing customers and the Company's
ability to attract new licensing customers; the level of Internet advertising
in general; competition, which could lead to pricing pressure; the Company's
ability to generate significant revenues from sources other than Internet
advertising; the Company's ability to motivate and retain its remaining
employees; general economic conditions; unforeseen changes in expense levels;
and the Company's ability to develop on a timely basis, as well as consumer
acceptance of, the Company's new services or tools. More information about
these and other potential factors, which could affect the Company's business
and financial results, is contained in the Company's Annual Report on
Form 10-K for the year ended December 31, 2000, as well as the other reports
it files with the Securities Exchange Commission, including its Form 10-Q for
the three months ended March 31, 2001. These forward-looking statements are
based on information available to the Company on the date hereof.
MarketWatch.com, Inc. assumes no obligation to publicize the results of any
potential revision of these forward-looking statements.
SOURCE MarketWatch.com, Inc.
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Related links:
http://cbs.marketwatch.com
CONTACT:
Joan P. Platt, Chief Financial Officer of
MarketWatch.com, Inc., 415-733-0500, or
investor_relations@marketwatch.com
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