DENVER, Oct. 4 /PRNewswire/ -- RMI.NET, Inc. (Nasdaq: RMII), a national
web solutions/e-commerce and connectivity company, announced today that
significant progress in all areas of its five-point strategic action plan is
having the desired impact. The company is on-track to achieve EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization) neutrality by
year-end.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
Since announcing its new strategic action plan in June, the company has
grown organic revenues, reduced operating expenses, introduced systems to
improve customer retention, developed a new market driven product and has
significantly upgraded its network.
"RMI.NET is not the same company it was nine months ago," said Douglas H.
Hanson, RMI.NET Chairman and CEO. "Every employee in this company is focused
on providing outstanding customer service and doing it cost effectively. This
focused effort is beginning to have an impact. We are so confident in our
direction that we now are looking beyond EBITDA neutrality to profitability,"
he explained.
The first point of the plan is to grow organic revenue by selling more
services to existing customers. In June the company initiated a major effort
to increase DSL sales. Since August, RMI has added 1,000 DSL customers per
month, versus 300 per month during the first half of the year. The company
expects this trend to accelerate through direct sales, referral partner
programs and a new wholesale division.
The company also has made considerable progress in its ongoing cost
reduction program. Since June, the company has reduced operating expenses by
43 percent and anticipates further reductions throughout the remainder of the
year. It is on target to reach EBITDA neutrality by year-end.
To improve customer satisfaction, the third point of the plan, the company
has introduced a new national customer care center and consolidated its
billing operations into a more customer-friendly interface. The new national
customer care center replaces five regional operations. It provides one point
of contact for all customer telephone calls and introduces a new web-based
self-care service option.
The new web-based billing system, designed and operated by CSG Systems
Inc., replaces 11 separately run systems providing a more effective and
efficient system for customers. The new single billing system that
substantially reduces operating expenses, is being launched October 23.
The fourth point of the strategic action plan is to develop market driven
products. The company has just released Marketplace v2.0 providing its
e-commerce customers with a new set of tools to effectively do business on the
web. This next generation platform enables online shopping, purchasing and
fulfillment. It also offers customer relationship and inventory management
and advanced merchandising capabilities. Further, the program has been
designed to integrate third party accounting and payment options.
As announced in August, the company also is on track to upgrade its
network with its agreement with Global Crossing North America. This
$46 million five-year agreement provides RMI.NET with a nationwide fiber
backbone giving its customers upgraded connections, the ability to connect
toll-free nationwide and the ability to access data and video services more
efficiently.
About RMI.NET
Denver-based RMI.NET is a national e-commerce and connectivity company
focusing on solutions for small and medium-sized businesses. The company
specializes in e-business applications; web solutions, including design,
hosting and marketing; and high-speed Internet access, including digital
subscriber line (DSL) service. RMI.NET has annualized revenue of over
$50 million and more than 100,000 customers nationwide. The company wholly
owns a shopping, e-commerce and portal site, http://www.webzone.com, which includes
the proprietary search engine, Infohiway. For more information, call
(800) 411-6066, or visit RMI.NET's web site at http://www.rmi.net.
This press release may contain forward-looking statements within the scope
of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Although the company believes these statements are based on reasonable
assumptions, it can give no assurance that its goals will be achieved.
Differences between assumed facts and actual results can be material depending
on the circumstances and investors should be aware of the important factors
that could have a material impact on future results. Please refer to the
cautionary statements section of RMI.NET's 10-K dated December 31, 1999, and
other Securities and Exchange Commission filings subsequent to this date.
SOURCE RMI.NET, Inc.
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Related links:
http://www.rmi.net
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/139760.html or fax,
800-758-5804, ext. 139760
CONTACT:
Alex Burney of RMI.NET, Inc., 303-672-0882,
alex.burney@corp.rmi.net
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