Interland
Announces Business Solutions Strategy [March
12, 2004]
ATLANTA,
Mar 12, 2004 (BUSINESS WIRE) -- Interland, Inc. (INLD)
, a leading provider of business-class Web hosting and
online services to small and medium businesses (SMBs),
announced today that it had decided to place more emphasis
on further developing indirect channel distribution
strategies for its Business Solutions line of products
rather than continuing large-scale direct sales efforts.
Interland had announced last year that it was developing
a line of products and services designed to help mainstream
businesses attract and serve customers through websites
supplied by Interland's team of designers using its
proprietary software.
"In the more than six months we
have been selling our Business Solutions products we
have proven to ourselves that we have many of the capabilities
necessary to successfully penetrate this market,"
said Joel J. Kocher, Interland's chairman and chief
executive officer. "We have found, though, that
we have some very significant opportunities to improve
the efficiency of our delivery and the breadth of our
solutions, and we will be focusing our resources on
these objectives."
Allen L. Shulman, Interland's chief
financial officer, said, "As a result of our decision
today we have substantially reduced the size of our
Business Solutions field sales force, and we will be
concentrating our website and software development teams
in Atlanta for greater interaction with the rest of
our team. With concommitant reductions in related G&A
costs, these changes will substantially lower our expenses
while we continue to perfect our approach to the mainstream
through the less expensive channels we have identified.
Combined with the progress we continue to make in our
core hosting businesses, we expect these decisions to
have a very healthy effect on our earnings and cash
flow. We will report on this more specifically during
our second quarter earnings announcement."
The company also announced that it would
schedule its second quarter earnings announcement and
conference call to coincide with the filing of its Form
10-Q. Details for the earnings conference call will
be provided in a subsequent press release, and at www.interland.com.
About Interland
Interland, Inc. (INLD) is a leading
Web hosting and online services company dedicated to
helping small and medium businesses achieve success
by providing the knowledge, services and tools to build,
manage and promote businesses online. Interland offers
a wide selection of online services, including standardized
Web hosting, e-commerce, application hosting, and Web
site development, marketing and optimization tools.
For more information about Interland, please visit www.interland.com.
Forward-looking Statements
Except for the historical information
contained in this press release, statements in this
press release may be considered forward-looking statements.
These forward-looking statements include, but are not
limited to: the anticipated impact on the company's
earnings and cash flows of the actions announced today
and other statements concerning matters that are not
historical facts. Actual results may differ materially
from those contained in the forward-looking statements
in this press release. Factors which could affect these
forward-looking statements, and Interland's business,
include but are not limited to: the ability to operate
within budgeted expense, the ability of the company
to improve customer satisfaction, reduce churn, and
expand its customer base as planned, general economic
conditions, the impact of competition, quarterly fluctuations
in operating results, the loss of customers with failing
businesses and customer churn in general, customer acceptance
of new products and services, the possible lack of availability
of our restricted investments, the retention of key
employees, investments in new business opportunities,
the company's ability to make infrastructure investments
at a lower cost per customer than its competition, higher
than expected costs of litigation and the impact of
liabilities that could carry over from Micron Electronics'
discontinued operations. Certain of these and other
risks associated with Interland's business are discussed
in more detail in its public filings with the Securities
and Exchange Commission, including its Annual Report
on Form 10-K, its Quarterly Reports on Form 10-Q and
its Current Reports on Form 8-K, and its proxy statement.
Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this
press release. The Company does not undertake to update
its forward-looking statements.
SOURCE: Interland, Inc.
Interland, Atlanta
Investor Relations
Fabrice Klein, 404-260-2537
fklein@interland.com |
