Autobytel Continues Streamlining, Cost Reductions, and Operational Focus; Cost Savings Estimated at $4 Million Annualized
IRVINE, Calif.--May 13, 2002--Autobytel Inc. announced a restructuring which is expected to generate savings of approximately $4 million on an annualized basis. This is a continuation of the efforts begun last year to reduce costs and improve operating efficiency subsequent to Autobytel's acquisition of Autoweb. The restructuring involves a reduction in workforce of approximately 15%, or 40 employees."This restructuring is a result of simplification, streamlining, and considerable focus on business operations. We reduced operating costs significantly following the acquisition of Autoweb and have continued to focus on driving even greater efficiencies throughout the business. These efforts represent a continuation of that process. We are encouraged by the progress we are making and remain quite confident in our business plan," said Jeffrey Schwartz, President and CEO of Autobytel Inc.
The company expects to take a second quarter restructuring charge of approximately $0.5 million relating to this workforce reduction.
About Autobytel Inc.
Autobytel Inc. , a leading Internet automotive marketing services company, helps retailers sell cars and manufacturers build brands through marketing and CRM (customer relationship management) programs. Autobytel Inc. owns and operates the popular Web sites Autobytel.com, Autoweb.com, Carsmart.com and Autosite.com, as well as AIC (Automotive Information Center), a leading provider of automotive marketing data and technology. Autobytel Inc. generated an estimated four percent of all domestic new vehicle sales -- $17 billion in car sales in 2001 -- for dealers through its Web sites. With approximately 8,900 dealer relationships and 30 international automotive manufacturer customers, Autobytel Inc. is the largest syndicated car-buying content network, reaching millions of unique visitors as they are making their vehicle buying decisions. Autobytel Inc. content and technology has potential exposure to over 90 percent of total Web traffic.(1)
(1) Jupiter Media Metrix October 2001 Digital Media Audience Report (Autobytel Inc. sites is the unduplicated audience of the Autobytel and Autoweb properties and Carsmart.com. The car-buying and ownership category as defined by Autobytel. Autobytel Inc. provides content to Yahoo! Inc., AOL Web sites, MSN.com and Lycos.com. The unduplicated audience of these four sites accounts for over 90 percent of total traffic.)
Forward-looking Statement Disclaimer
The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Autobytel undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements are changes in general economic conditions, increased dealer attrition, increased pressure on program fees, increased or unexpected competition, that actual costs and expenses exceed the charges taken or to be taken by the company, the company's failure to realize anticipated savings related to the restructuring of its operations and other matters disclosed in Autobytel's filings with the Securities and Exchange Commission. Investors are strongly encouraged to review our annual report on Form 10-K for the year ended December 31, 2001, and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of our stock.