AirIQ Announces Leadership Appointments and Workforce Reductions
TORONTO, ONTARIO – January 25, 2006 – AirIQ Inc. (TSX: IQ), a leader in global wireless security, announced today that it has implemented a plan to accelerate profitability through an internal reorganization that includes two key senior leadership appointments and a reduction of the Company’s workforce.
The internal reorganization includes the reduction of approximately 13% of the Company’s current workforce, for an expected annual expense reduction of approximately $2 million in payroll and other operating costs, representing approximately 10% of its historical operating expense level over the last year. The Company will take a charge of approximately $250,000 in the first quarter of 2006 as a result of this workforce reduction.
The reduction in operating expenses should directly help the Company achieve its stated objective of being “Adjusted EBITDA” positive. The reduction in expenses will be accomplished while maintaining full service to its existing and growing base of more than 200,000 subscribers.
“The completion of our GSM program is one of the key milestones accomplished in 2005 that enables us to take this further step of integration,” said Mr. Don Simmonds, Chief Executive Officer of AirIQ. “We now remain focused on the acquisition of increasing levels of new subscribers and the efficiency of our delivery operations.”
As part of the reorganization, David Brandos and Colin Zvaniga will join Ken Wiesner, Chief Operating Officer, Mark Kohler, Chief Financial Officer, and Don Simmonds, Chief Executive Officer, as members of AirIQ’s senior leadership team.
Mr. Brandos has been appointed Chief Marketing Officer of the Company while continuing his leadership role of the Boatracs Division. Based in San Diego, California, Mr. Brandos has a strong track record in the wireless services industry and will apply his expertise to the Company’s services roadmap and oversight of an Advanced Technology Group.
The Company has also expanded the responsibilities of Mr. Zvaniga, Vice President Solution Delivery and Quality, who will now oversee these functions on an integrated basis. Mr. Zvaniga’s responsibilities include the end to end delivery of the Company’s solution including applications development, technical operations, solution launch and all client facing service support.
“Several achievements during 2005 have enabled us to take this integration step signaling a shift from a development phase to a delivery phase,” said Mr. Simmonds. “Since inception, we have aggressively developed technology, expanded vertical markets, and acquired other companies, emerging as one of North America’s leading Telematics service providers.”
AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in Global Wireless Security, AirIQ is headquartered in Pickering, near Toronto, Canada, with offices in Lake Forest and San Diego, California, U.S.A. The Company operates as a wireless Internet applications service provider specializing in Telematics. Telematics is the name given to information and control messages sent wirelessly to and from vehicles and vessels. AirIQ’s services are offered to five primary markets: Commercial Fleets; Consumer; Vehicle Finance; Indirect Distribution; and Marine Fleets. AirIQ gives vehicle and vessel owners the abilities to manage and protect their mobile assets. AirIQ’s services include: vehicle locating, boundary notification, automated inventory, maintenance reminders, security alerts, vehicle disabling, unauthorized movement alerts and many more features. For additional information on AirIQ, its products and services, please visit the Company’s website at www.airiq.com.
Adjusted EBITDA is not a recognized measure under Canadian generally accepted accounting principles (GAAP). Management believes that, in addition to net income (loss), Adjusted EBITDA is a useful supplemental measure as it is used by certain investors as one measure of the Company’s financial performance. Investors should be cautioned, however, that Adjusted EBITDA should not be construed as an alternative to net income (loss) determined in accordance with GAAP as an indicator of the Company’s performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Company’s method of calculating Adjusted EBITDA may differ from other companies and, accordingly, Adjusted EBITDA may not be comparable to measures used by other companies.
This news release contains forward-looking information based on management’s best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes and results may differ materially from those expressed in such forward-looking statements. AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
- Contact Information
- Mary Catherine Telemaque
- Manager, Corporate Communications
- AirIQ Inc.
- Contact via E-mail
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