Self-funded Future Growth Separation From Loss-making LOBs
Utimaco Safeware, the IT security specialist, has taken the decision to focus its resources on the LOBs (lines of business) with the highest revenues and giving the best prospect for success. These are Personal Device Security (PDS), Digital Transaction Security (DTS) and the System House, which provides customer-specific security solutions. PDS and the System House are already profitable and DTS is expected to achieve profitability shortly.
The two loss-making LOBs, Network Security and Security Modules, will be shut down. The System House will take over the support and maintenance of our customers for these LOBS and will take over CryptoServer 2000 product and the network technologies as part of customer projects.
Utimaco Safeware's refocusing makes it possible for the company to return to sustainable profitability, in the short term, and to internally finance future growth. As part of this focussed strategy, the number of employees will be reduced by 20 percent to 260. The extraordinary costs associated with this action of approximately Euro 3.8 million will be accounted for in the half-yearly balance sheet of 31 December 2001. Finance will be provided by the financial package implemented in December 2001.
"Focussing our activities will enable us to expand our good market position significantly in the areas of Personal Device Security and Digital Transaction Security", stated Bram van der Wal, board member of Utimaco Safeware. "In these areas we provide an outstanding range of technologies, products and references, and foresee an enormous potential market for ourselves. According to expert estimates only around three percent of all laptops in companies currently use encryption. There is also a huge demand for security solutions for small mobile devices such as PDAs and smartphones. The same applies for E-mail Security and Digital Signature, which are essential for eGovernment and B2B business processes."
"I am convinced that this refocusing accurately reflects the changed market situation and means that the company is in an excellent position to meet the demands of the future", said Horst Görtz, company founder and director of the Horst Görtz foundation, which, with 24.5 percent, is the largest individual shareholder in Utimaco Safeware.
The company's strategic reorganisation is being assisted by consultancy from BlueChipBusiness Labs, Bad Homburg, Germany. BlueChipBusiness Labs was founded by Konrad F. Reiss, former CEO of debis Systemhaus.
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About Utimaco Safeware
Utimaco Safeware AG is one of the major European technological manufacturers of professional IT security solutions. The security technology and solutions developed by Utimaco Safeware protect the electronic data of companies and government bodies against unauthorised access and guarantees that business processes and administrative procedures in the electronic world are binding and confidential.
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