BRAMPTON, ON, Jan. 16, 2017 /CNW/ - DATA Communications
Management Corp. (TSX: DCM)("DCM" or the "Company")
announced today that it has completed an additional investment in
its high speed digital print capabilities, including the addition
of another Xerox iGen® 5 digital press. DATA also
announced it will be adding a new digital label press,
together with other upgrades and technology enhancements to its
current label presses, in the first quarter of 2017. The
total investment in these enhanced capabilities is approximately
$2.1 million.
"These investments dramatically increase our capabilities in key
growth segments of our business. We remain the leading cut
sheet digital colour manufacturing company in Canada and our expanded label capabilities
will further establish DATA as one of the leading providers of
label products and solutions in the country," said Michael G. Sifton, CEO.
DATA also announced additional steps to focus the Company on
profitable growing segments, including: the consolidation of
its Regina, Saskatchewan
manufacturing and warehousing operations into its Calgary, Alberta facility; the closure of its
Brossard, Quebec Document Process
Outsourcing facility, effective March 31,
2017; and, the outsourcing of its call centre facility to a
leading third party business process outsourcing provider,
effective March 1, 2017. The
Company expects to incur total restructuring costs of approximately
$0.9 million in connection with these
initiatives.
"Our goal 18 months ago was to focus on business where we excel,
are profitable, and have the ability to grow," stated Mr.
Sifton. "With these initiatives, we have completed our
transition and now have five centres of manufacturing excellence
across the country."
In addition to these changes, the Company announced today the
departure of Jeff Gladwish, Vice
President, Marketing and Corporate Development.
"Jeff has served the Company well through our transition and we
wish him well in his future endeavours," continued Mr.
Sifton. "The direction we are taking centres on expanding our
services with existing customers and capturing growing segments
within the print production and data management areas. As
such, our marketing push will be highly targeted and customer
centric."
About DATA Communications Management Corp.
At DATA, we
are experts at planning and driving business communications. We
help marketers and agencies unify and execute communications
campaigns across multiple channels, and we help operations teams
streamline and automate document and communications management
processes. Our core capabilities include direct marketing, print
services, labels and asset tracking, event tickets and gift cards,
logistics and fulfilment, content and workflow management, data
management and analytics, and regulatory communications. We serve
clients in key vertical markets such as financial services, retail,
healthcare, lottery and gaming, not-for-profit, and energy. We are
strategically located across Canada to support clients on a national basis,
and serve the U.S. market through our facilities in Chicago, Illinois.
Additional information relating to DATA Communications
Management Corp. is available on www.datacm.com, and in the
disclosure documents filed by DATA Communications Management Corp.
on the System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute
"forward-looking" statements that involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance, objectives or achievements of DATA, or industry
results, to be materially different from any future results,
performance, objectives or achievements expressed or implied by
such forward-looking statements. When used in this press release,
words such as "may", "would", "could", "will", "expect",
"anticipate", "estimate", "believe", "intend", "plan", and other
similar expressions are intended to identify forward-looking
statements. These statements reflect DATA's current views regarding
future events and operating performance, are based on information
currently available to DATA, and speak only as of the date of this
press release. These forward-looking statements involve a
number of risks, uncertainties and assumptions and should not be
read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such
performance or results will be achieved. Many factors could
cause the actual results, performance, objectives or achievements
of DATA to be materially different from any future results,
performance, objectives or achievements that may be expressed or
implied by such forward-looking statements. The principal factors,
assumptions and risks that DATA made or took into account in the
preparation of these forward-looking statements include: the
limited growth in the traditional printing industry and the
potential for further declines in sales of DATA's printed business
documents relative to historical sales levels for those products;
the risk that changes in the mix of products and services sold by
DATA which are related to reduced demand for its printed products
will adversely affect DATA's financial results; the risk that DATA
may not be successful in reducing the size of its legacy print
business, reducing costs, reducing its long-term debt, repaying or
refinancing its outstanding 6.00% convertible unsecured
subordinated debentures, and growing its digital communications
business; the risk that DATA may not be successful in managing its
organic growth, or implementing its restructuring activities within
expected timeframes and related cost estimates; DATA's ability to
invest in, develop and successfully market new digital and other
products and services; competition from competitors supplying
similar products and services, some of whom have greater economic
resources than DATA and are well-established suppliers; DATA's
ability to grow its sales or even maintain historical levels of its
sales of printed business documents; the impact of economic
conditions on DATA's businesses; risks associated with acquisitions
by DATA; increases in the costs of paper and other raw materials
used by DATA; and DATA's ability to maintain relationships with its
customers. Additional factors are discussed elsewhere in this press
release and under the headings "Risk Factors" and "Risks and
Uncertainties" in DATA's management's discussion and analysis and
in DATA's other publicly available disclosure documents, as filed
by DATA on SEDAR (www.sedar.com). Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described in this press
release as intended, planned, anticipated, believed, estimated or
expected. Unless required by applicable securities law, DATA
does not intend and does not assume any obligation to update these
forward-looking statements.
SOURCE DATA Communications Management Corp.