AutoTradeCenter Announces Organizational Restructuring; Company Poised for Positive Cash Flow Opportunity
SCOTTSDALE, Ariz.--Sept. 5, 2001--AutoTradeCenter (OTC BB:AUTC) in line with achieving strategic business plan objectives, Wednesday announced several key restructuring changes emphasizing stronger internal control of technology development and client services.These changes include expansion of the company's technology staff for in-house software development and web hosting, consolidation of accounting and financial resources, as well as reassignment of personnel for targeted market penetration.
"During the past 18 months, AutoTradeCenter (ATC) has evolved into a leading Internet remarketing service provider to the automotive industry. Up to this point, our business infrastructure has served us well in the development and introduction of a new remarketing channel," said Roger L. Butterwick, president of AutoTradeCenter.
"As the automotive industry continues to acknowledge the productivity and savings associated with Internet remarketing, AutoTradeCenter is changing to reflect the industry's needs and service client goals.
"Our recent alliance with Eagle Capital Group (Eagle), offers ATC the unique opportunity to greatly expand our profitability potential by fully utilizing their comprehensive portfolio of financial, technological and marketing services.
"This consolidation of services and personnel has effectively reduced ATC's total operational expenses by approximately $200,000 per month and continues the momentum toward positive cash flow."
A brief outline of AutoTradeCenter executive and operational restructuring is as follows:
| -- | Technology Development: In a move to consolidate resources and improve client development response time, AutoTradeCenter has enhanced their in-house technology development group with two engineers providing Silver Stream and Oracle software expertise. With these staff additions, ATC has brought in-house all engineering and programming services formerly contracted to outside vendors. Mark Jensen, vice president, will continue to direct all technology development, Internet strategies and operations. |
| -- | Web Hosting: ATC's web hosting service, formerly maintained by an outside vendor in California, is now located in Phoenix. All client maintenance, administration and security of client web sites are the responsibility of a software affiliate of ATC's funding partner, Eagle. |
| -- | Accounting/Finance: Michael Feinstein, formerly chief financial officer, has left AutoTradeCenter. His duties and responsibilities have been reassigned to Chris Arnold, a principal of Eagle whose affiliate is providing all financial, accounting and reporting functions. |
| -- | Marketing: Colette Marcilliat, formerly vice president marketing and president of remarketing services, has left ATC to pursue outside opportunities. During her tenure with AutoTradeCenter, Marcilliat was instrumental in the launch of Internet remarketing programs for American Honda Finance Corp. (VIPS) and American Suzuki Motor Corp. (PROline). Steven Wheeler, director of business development, will continue to be responsible for all new business contacts, client relations management, as well as corporate promotional activities. |
Commenting on the executive changes, Butterwick stated, "The restructuring allows for a greater team synergy between ATC management and staff. This streamlining of resources eliminates departmental overlapping while enhancing effective decision making for profitable growth. Michael Feinstein and Colette Marcilliat, have both made significant contributions to AutoTradeCenter in reaching its current leadership position."
AutoTradeCenter (ATC) is the leading Internet-based "business-to-business" automotive remarketing company. The company markets its services to automobile manufacturers, captive finance companies, lease and rental companies, and financial institutions across the United States.
ATC powers the American Honda Finance Corp.'s Vehicle Inter-Dealer Purchase System "VIPS" and the American Suzuki Motor Corp.`s PROline, utilizing Internet technology and remarketing services. ATC will be launching a similar remarketing program for Volvo Finance North America Inc. September 2001.
For more information on AutoTradeCenter.com Inc., please visit http://www.autotradecenter.com/ or contact Public Relations at lseegan@autotradecenter.com.
Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995.
The company intends that such statements about the company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby.
Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.