JERSEY CITY, N.J.--Jan. 2, 2003.
Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payments, settlement, and cash management solutions, announced today that it has consolidated its development, professional services and customer services activities into three global groups under the leadership of Michael Sgroe, newly-appointed Chief Operating Officer.
The global management shift, which also includes the appointment of Joseph P. Mazzetti as Executive Vice President of Global Sales and Marketing, is designed to streamline operations and better serve a global base of banking customers. Related staff reductions will lower ongoing expenses by $500,000 per quarter beginning in the first quarter of 2003.
The Company also reaffirmed its earlier guidance for Q4, noting that it expects to be approximately breakeven on an EBITDA basis, excluding one time charges, which now include a previously announced $1 million restructuring charge related to real estate lease obligations, a $900,000 settlement of a previously disclosed dispute, plus an additional $900,000 of employee-related expenses in
conjunction with the new organizational changes.
"Globalization has reshaped the way we look at our company, customers products and services," said Reuven Ben Menachem, Chairman and CEO of Fundtech. "As we continue to evolve from a company focused on product development to one that delivers high quality, reliable solutions to banks around the world, we need to align our operations to better serve a growing global customer base. I am confident that Fundtech will continue to prosper under this structure and our
Prior to his promotion to Chief Operating Officer, Mr. Sgroe was Executive Vice President and President, U.S. Products and Operations. Prior to joining Fundtech in 2000, he spent 16 years at Chase Manhattan and Chemical Bank, with responsibility for delivering high-performance solutions for the funds transfer and cash management businesses of the banks.
"This is a challenging market and I look forward to the opportunity of developing Fundtech's world-class financial technology business," said Michael Sgroe, Chief Operating Officer. "With 750 clients worldwide and the completion of several new major products, we are well positioned to execute our strategy."