MIVA Announces Restructuring Plan
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MIVA, Inc., (NASDAQ:MIVA), a digital media company, announced a
restructuring plan on June 23, 2008 designed to maximize efficiencies
within the company, eliminate certain unprofitable operations, and
better position the company for the future.
Under the current restructuring plan, the company expects to reduce its
active headcount by approximately 15% and anticipates winding-down its
MIVA Media operation in Italy. This current restructuring plan is
expected to deliver annualized savings of approximately $4 million
against a one-time cost of approximately $1.4 million.
As part of maximizing its efficiencies, the company expects to place
more focus on the development of high-margin operations such as its
toolbar and personalized homepage brand, ALOT.
MIVA has built an active ALOT toolbar user base of 2.7 million1
since launching the ALOT brand in Q4 2007. While ALOT today accounts for
43% of the company’s overall toolbar user base
of 6.3 million, the new brand is already delivering more than 55% of the
company’s total toolbar revenue2.
Revenue per thousand live users (RPMLU) is currently 62% higher through
ALOT than MIVA’s legacy toolbar brand3.
Additionally, ALOT’s retention rates are 14%
improved when compared to MIVA’s legacy brand4.
"We continue to be extremely encouraged by the
results we’re seeing from the ALOT roll-out
and are actively exploring further product enhancements to help build on
this growth. The ALOT customer base is increasing by on average 18%5
a month and we believe that these customers are proving more valuable
than users of our legacy toolbar brand,” said
Peter Corrao, Chief Executive Officer, MIVA, Inc. "Our
restructuring plan should enable us to focus on growing these
higher-margin operations and help to bring the company to profitability.”
Among the initiatives currently underway to further build on the success
of the ALOT brand is an upgraded ALOT Homepage product, which is
expected to launch in July 2008. It is expected that the upgraded ALOT
Homepage product will allow users to fully customize their homepage
choosing from a range of interest-specific widgets.
www.miva.com 1 Source: Internal statistics, 6.27.08
2 Source: Internal statistics
3 Source: Internal statistics 6.20.08 to 6.27.08
4 Source: Internal statistics 5.27.08 to 6.27.08
5 Source: Internal statistics Jan –
May 2008
About MIVA®,
Inc.
MIVA, Inc. (NASDAQ:MIVA) is a global digital media company with a
mission to deliver valuable digital audiences to advertisers. MIVA has
two focuses to its business: owning and operating a growing portfolio of
consumer destination sites and interest-specific toolbars, through its
MIVA Direct division; and running a third-party contextual Pay-Per-Click
ad network focused on key vertical sectors, through its MIVA Media
division. MIVA, Inc. operates across North America and Europe.
Forward-looking Statements
This press release contains certain forward-looking statements that are
based upon current expectations and involve certain risks and
uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Words or expressions such as "anticipate”
, "plan," "will," "intend," "believe" or "expect'" or variations of such
words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties, and other factors, some of which are beyond our control
and difficult to predict and could cause actual results to differ
materially from those expressed or forecasted in the forward-looking
statements, including (1) our ability to successfully execute upon our
corporate strategies, (2) our ability to develop and successfully market
new products and services, and (3) the potential acceptance of new
products in the market. Additional key risks are described in MIVA's
reports filed with the U.S. Securities and Exchange Commission,
including the Form 10-K for fiscal 2007 and our most recently filed Form
10-Q.
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