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CCI/Triad Right-Sizes to Increase Market Competitiveness

28 May 1998

CCI/Triad Right-Sizes to Increase Market Competitiveness

    AUSTIN, Texas, May 28 -- CCI/Triad's executive management
team announces the review and fine-tuning of the company's business forecast
based on historical performance combined with trends in the marketplace.
Amongst a significant number of conclusions, analysis indicates CCI/Triad's
expense level is leading revenue.  To remedy this trend, CCI/Triad initiated a
company-wide right-sizing effort.
    This trend of expenses leading revenue is particularly evident within the
company's Automotive Division.  The group -- which services the Automotive
Aftermarket, the company's largest customer base -- experienced fewer system
sales than forecast primarily due to the unusually mild winter of 1997-98.  In
the auto parts distribution industry, mild winters result in fewer parts
sales.  This means decisions regarding capital expenditures such as computer
systems can be delayed.  CCI/Triad is a leading provider of management
information systems, data, and services to the Automotive Aftermarket and
Hardlines and Lumber industries.
    Since merging Cooperative Computing (CCI) of Austin, Tex., and Triad
Systems of Livermore, Calif., approximately 15 months ago (February 1997), the
combined company mainly focused on strategic consolidations as the way to
control and reduce expense.  While these consolidations were important to the
company from an operational perspective, they did not bring expenses in line
with current and expected revenue levels.  Therefore, the company devised a
plan to implement mid-course adjustments.
    "A key benefit for bringing CCI and Triad together in February 1997 was to
leverage the synergies between the two companies," said Dr. Glenn E. Staats,
CEO of CCI/Triad.  "To a large extent we accomplished that goal, bringing to
market much improved products and service for our customers.  Implementing the
right cost structure will enable CCI/Triad to be market competitive for our
customers and our employees."
    According to Staats, CCI/Triad's plan is to set the appropriate level of
expense for each major division of the company, based mainly on revenue and
profitability.  Part of this right-sizing effort, however, also resulted in a
reduction to the company's workforce.  Approximately 140 regular positions and
40 contract positions were eliminated at proportional levels across the
company's Austin, Livermore, and Newton, N.J., locations.  The positions
selected for elimination were determined to be redundant, excess, or no longer
necessary to run the business.
    "The goal of this action was to ensure a more viable business operation
for CCI/Triad customers and employees," said Staats.  "A more 'streamlined'
organization will enable better pricing for our customers and greater benefits
and incentives for existing and future CCI/Triad employees."
    CCI/Triad, a Cooperative Computing Inc. (CCI) company, was formed in
February 1997 when Austin-based Cooperative Computing, in conjunction with
Hicks, Muse, Tate, and Furst, and leading private investment firm based in
Dallas, Tex., acquired Triad systems Corp. of Livermore, Calif.  Headquartered
in Austin, CCI/Triad also has operations in Livermore, Calif.; Denver, Col.;
Newton, N.J.; San Antonio, Tex.; Minneapolis, Minn.; Florence, Ala.; and
internationally in Canada, France, Ireland, and the United Kingdom.  CCI/Triad
is lead by President and CEO Glenn E. Staats, Ph.D., founder of Cooperative
Computing, Inc.